The Apple Company posted quarterly revenue of $53.8 billion, an increase of 1 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.18, down 7 percent for the 3rd quarter of 2019.
Its products sales are down 1.7 percent compared to the same quarter last year. The total net sale is up 1 percentage because of the huge increase in its services sales.
Apple sold $11.4 billion in services in just three months. According to the World Bank, this is more than the full-year GDP of almost 100 countries (from bottom in the descending list).
Quarter 3 results:
Here is what its officers are saying about this quarter performance.
“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends.”Tim Cook, Apple’s CEO.
“We returned over $21 billion to shareholders during the quarter, including $17 billion through open market repurchases of almost 88 million Apple shares, and $3.6 billion in dividends and equivalents.”Luca Maestri, Apple’s CFO
iPhone sales are finally plateaued. iPhone sales have fallen 11.8% as compared to the same quarter last year. Below is the summary of the sales of their signature products and services.
It seems iPhone users are using their phones longer or at least not buying as frequently. iPhone fanboys like myself are using the same set for 2 years now. I used to buy it every year or whenever the new version came out. This consumer behavior is hurting sales.
The total shareholders’ equity fell to $96 billion from $107 billion last year. This is because Apple is heavily buying back its share outstanding.
Apple is providing the following guidance for its fiscal 2019 fourth quarter:
- Revenue between $61 billion and $64 billion
- Gross margin between 37.5 percent and 38.5 percent
- Operating expenses between $8.7 billion and $8.8 billion
- Other income/(expense) of $200 million
- Tax rate of approximately 16.5 percent