As soon as the Apple smartphone market began to show signs of saturation, and demand for them began to show price elasticity, the company stopped publishing data on the number of iPhones sold during the period in quarterly reports. Moreover, recently in public documentation, which is distributed synchronously with , the percentage dynamics for all categories of products and services are not indicated. They can be heard in management's comments on the quarterly report, and in this regard, the transcript of the quarterly event is very helpful.
Formally, on September 28 of this year, the fourth quarter of 2019 ended in Apple’s fiscal calendar, but for ease of perception we will call it the third. The company's total revenue reached $64 billion, which is 2% more than the same period last year. Despite the modest size of the increase, this was Apple's record revenue for the third quarter, and it coincided with the company's own forecasts. About $1 billion had to be lost due to exchange rate differences, because Apple receives 60% of its revenue outside the United States.
Continuing the conversation on geography, Apple reported record quarterly revenue in the following regions: the Americas, Asia-Pacific and mainland China. Annual revenue since Apple's reporting period ended at the end of September set new records in the US, Canada, Brazil, UK, France, Germany, Italy, Poland, South Korea, Malaysia, the Philippines and Vietnam.
iPhone sales continue to account for more than half of the company's total revenue. Last quarter, Apple generated $33 billion in smartphone sales, down 9% from the third quarter of last year. It must be said that the company's management sees positive trends even in the slowdown of negative dynamics. In the second quarter, the decline in iPhone sales revenue was as high as 12%, and in the first half of the year it was 16%. The eleventh series smartphones were greeted with enthusiasm by the public, but did not have time to have a significant impact on the statistics of the third quarter. In all regions of Apple's presence, the iPhone user base reached historical highs.
iPad revenue rose 17% to $4,66 billion, thanks to the popularity of the iPad Pro. In all five geographic macro-regions, revenue from iPad sales increased, and in Japan it was able to set a new record. The iPad user base reached a new record high, and more than half of all tablet buyers in the third quarter had never previously owned a device from the family.
Sales of Mac family computers brought Apple almost $7 billion in the last quarter. It is quite difficult to compare this figure with the results of the same quarter last year, because then two new MacBook Pros entered the market at once, but at the end of the entire fiscal year, revenue in the Mac segment reached its highest level in the entire history of Apple meaning. In Japan, which is now intensively purchasing computers for the Olympics, revenue from sales of Macs set a quarterly record. High rates were achieved in the USA and India. As with tablets, the Mac user base was at an all-time high, and more than half of its customers were new users.
The company began to separate revenue from sales of products and services in its reports. Within the grocery category, revenue excluding iPhone grew 17%. Services brought Apple 18% more than a year earlier, at $12,5 billion, a record revenue for the category. Similar dynamics were observed in all geographical macroregions. Services accounted for 20% of the company's total revenue and 33% of its profit margin. In general, if we talk about the profit margin, then at the level of the entire company it reached 38%, in the “product” segment it did not exceed 31,6%, and in the services segment it amounted to 64,1%. It is clear that services are not only a fast-growing business for Apple, but also a very profitable one.
The head of the company, Tim Cook, also spoke a lot about the success of wearable devices, constantly recalling the launch of sales of AirPods Pro wireless headphones with noise-canceling function. Revenue from sales of Apple wearable devices grew by 50%, it reached record levels in all geographic regions. Nearly three-quarters of Apple Watch buyers were purchasing it for the first time. Cook is convinced that saturation of this market segment is still very far away.
Source: 3dnews.ru