Apple on Tuesday announced financial results for its first fiscal quarter of 2019 (fourth calendar quarter of 2018). While iPhone revenue dropped for the quarter, all other revenue streams showed growth.
Apple posted revenue of $84.31 billion and a net quarterly profit of $19.965 billion ($4.18 per diluted share), compared to year-ago revenue of $88.3 billion and net quarterly profit of $20.1 billion ($3.89 per diluted share).
iPhone revenue declined 15% from the prior year, while total revenue from all other products and services grew 19%. Services revenue reached an all-time high of $10.9 billion, up 19% over the prior year. Mac and Wearables, Home and Accessories also reached all-time highs, growing 9% and 33%, respectively. iPad revenue grew 17%.
“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said Tim Cook, Apple’s CEO. “Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”
“We generated very strong operating cash flow of $26.7 billion during the December quarter and set an all-time EPS record of $4.18,” said Luca Maestri, Apple’s CFO. “We returned over $13 billion to our investors during the quarter through dividends and share repurchases. Our net cash balance was $130 billion at the end of the quarter, and we continue to target a net cash neutral position over time.”
Apple is providing the following guidance for its fiscal 2019 second quarter:
- revenue between $55 billion and $59 billion
- gross margin between 37 percent and 38 percent
- operating expenses between $8.5 billion and $8.6 billion
- other income/(expense) of $300 million
- tax rate of approximately 17 percent
Apple’s board of directors declared a cash dividend of $0.73 per share of the Company’s common stock. The dividend is payable on February 14, 2019 to shareholders of record as of the close of business on February 11, 2019.