Apple (almost) beats the cynics, promises ‘New Shiny’ soon…

Wearables are on the up — revenue hit $5.5b…

Apple’s services push seems to be working, as its own data shows that while product sales dipped by just around $750k, services income climbed by £1.3 billion.

In fact, Apple’s alchemy means the company delivered its best June quarter yet – sort of…

(Though the balance sheet shows Net income fell)

What Apple says

“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” said Tim Cook, Apple’s CEO.

“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.”

**WAKE UP NEW SHINY IS COMING**

“Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6 billion,” said Luca Maestri, Apple’s CFO.

“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.”

Let’s look at the data

Apple today announced financial results for its fiscal 2019 third quarter ended June 29, 2019:

• It posted quarterly revenue of $53.8 billion, up 1% y-o-y.
• Quarterly earnings per diluted share of $2.18, fell down 7 percent.
• International sales accounted for 59 percent of the quarter’s revenue.
• Apple Card ships August
• Wearable revenues hit $5.5b.
• Services revenue up 13% y-o-y.
• iPhone sales down. Mac sales up.
• iPad sales climbed.
• Apple TV viewership up 40%.
• Apple Pay transactions are twice as high as a year ago.

What’s happening next?

Apple is providing the following guidance for its fiscal 2019 fourth quarter:

• Revenue between $61 billion and $64 billion
• Gross margin between 37.5 percent and 38.5 percent
• Operating expenses between $8.7 billion and $8.8 billion
• Other income/(expense) of $200 million
• Tax rate of approximately 16.5 percent.

At time of writing, Apple is streaming its Q3 2019 financial results conference call at www.apple.com/investor/earnings-call.

The webcast will also be available for replay for approximately two weeks thereafter.

More on this tomorrow.

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