Services soar in Apple Q4
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Editor
| 31 October 2019

It seems bizarre to see Apple financial statements not dominated by the iPhone but that is precisely the case for the fourth quarter of the company’s fiscal year which on the eve of the launch of its direct-to-consumer has seen a tilt towards service revenue.

For its fiscal 2019 fourth quarter ended 28 September 2019, Apple posted quarterly revenue of $64 billion, up 2% from the year-ago quarter, and saw quarterly earnings per diluted share of $3.03, up 4%. International sales continued their acceleration for the CE giant and accounted for 60% of the quarter’s revenue.

In the quarter, iPhone sales totalled €33.362 billion down 9.2% annually, while service revenue soared 18% to 12.511 billion.

“We concluded a ground-breaking fiscal 2019 with our highest Q4 revenue ever, fuelled by accelerating growth from services, wearables and iPad,” said Apple CEO Tim Cook commenting on the results. “With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best line-up of products and services ever, we’re very optimistic about what the holiday quarter has in store.”

Looking in to the new year, Apple provided 2020 first quarter guidance of revenue between $85.5 billion and $89.5 billion; gross margin between 37.5% and 38.5%; operating expenses between $9.6 billion and $9.8 billion; and other income/(expense) of $200 million.