Apple released its Fiscal Q3 2019 recording profit of $10 Billion on $53.8 Billion revenue which was 1% up over last year, same period, informed the official press release yesterday. Even as its international sales earned 59% of its Quarter’s revenue from the total, the share earnings for the quarterly earnings per diluted share of $2.18 was down 7%.
Star performers from its host of products were services, wearables, iPad, iMac and with ‘significant improvements in iPhone trends.’ The gross margin stood at $20.22 billion down from last year same fiscal quarter, whereas the total operating expenses stood at $86.83 billion also is significantly higher in comparison.
Services backed by Wearables, iPad & Mac Stole March as iPhones Add to Revenues.
According to the press release:
Tim Cook, Apple’s CEO said, “This was our biggest June quarter ever — driven by record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends. These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services, and several new products.”
Luca Maestri, Apple’s CFO said, “Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6 billion. 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.”
Apple’s App Store, AppleCare & Apple Pay May Still Cover Lost iPhone Tracks
Apple looks to focus on other product segments than iPhones, which for long has been its ‘star performer.’ Mired in trade wars and disputes, not of its making, Apple’s iPhones in specific, took a beating in the global markets like China and India. There, local competition impacted its sales, significantly.
On the H2 forecast front, Apple Suppliers have set 75 Million iPhone Output for H2 2019 on stable demand. A slew of new feature-rich iPhone 2019 models have been lined up for its traditional September launch from Cupertino headquarters. Add to this the new 16-inch Slim MacBook Pro that is awaited by Professionals and Apple Fans.
But returning to the question is whether new customers will be ready to pay up for the tags they carry? Further, more launches from Apple Services stable like Apple’s App Store, AppleCare, Apple Pay, that led to a revenue jump of 31% to $9.2 billion in the three months ended Mar. 31, are heavily banked upon now, as mentioned earlier by Tim Cook.
Apple puts up Fiscal Q4 2019 Guidance.
The company has put up following guidance for its Fiscal 2019 fourth Quarter:
- Revenue between $61 billion and $64 billion
- Gross margin between 37.5% and 38.5%
- Operating expenses between $8.7 billion and $8.8 billion
- Other income/(expense) of $200 million
- Tax rate of approximately 16.5%
Apple offers live streaming of its Q3 2019 financial results conference call beginning at 2:00 p.m. PDT on July 30, 2019. This webcast will also be available for replay for approximately two weeks thereafter, informs the release.