- Apple's earnings and profits are down from a year ago.
- The company is holding the course by raising dividends and repurchasing shares.
- The decline in iPhone sales continues. Mac shipments are also falling.
- Growth in other areas, including wearables and services, did not make up for losses in the core business.
Apple has released economic data for the second quarter of its fiscal 2019 - the first quarter of the calendar. The company's revenues amounted to $58 billion, which is 5,1% lower than in the same period last year. Gross margin fell from 38,3% to 37,6% for the year, and EPS was $2,46, down 9,9%. In the revenue structure, sales outside the company's native US market account for 61%.
Cash flow from operations during the second quarter was $11,2 billion. Investors received over $27 billion through dividends and share buybacks, with an additional $75 billion allocated by the Board of Directors for the latter goal. per share.
The number of active Apple devices has exceeded 1,4 billion and continues to increase. Noticeable growth is observed in the categories of wearable electronics, home appliances and accessories. iPad tablets showed the most significant sales growth in 6 years. And the services business set an absolute record.
While Apple is no longer disclosing sales figures individually by model, the overall iPhone business continues to struggle. Revenue for the quarter was down an impressive 17,3% to $31 billion. The results look even more depressing when you consider that the average price of a smartphone today is the highest in the history of the iPhone. Apple's main driving force has failed: the attractiveness of the iPhone at this price seems doubtful to many today. In addition, the company does not keep up with market trends - it is enough to recall that this year the devices, according to rumors, will still have a screen notch that was outdated back in 2018.
Mac sales also dropped 4,5% to $5,5 billion in the quarter. iPad's 21,5% increase in revenue to $4,9 billion was driven by a two-tiered strategy: price increases for Pro models and price cuts for entry-level tablets. The most dynamic development was shown by the group of wearable devices, home appliances and accessories — 30% and $5,1 billion for the quarter.
Apple services, including iTunes, Apple Music, iCloud and others, grew by 16,2% to $11,4 billion - based on the number of active devices, the company managed to earn $8,18 on each. The company seeks to strengthen this direction and at the end of March introduced a subscription game , whose work has not yet been reflected in the financial results. Also this year will be the launch of a television service , and in the US and Canada, a subscription service has already been introduced with access to over 300 popular magazines.
In the third quarter of its fiscal year, Apple expects to generate revenue of $52,5-54,5 billion and gross profit of 37-38%, with operating expenses of $8,7-8,8 billion.
Source: 3dnews.ru