Apple today announced its quarterly earnings for Q3 2019 which saw it post revenues of $53.8 billion with a profit of $10 billion.
YoY, Apple’s revenues increased slightly from $53.3 billion in Q3 2018 to $53.8 billion this time around. However, its profit declined from $11.5 billion to $10 billion YoY. This was the biggest ever Q3 for Apple in terms of revenue despite waning iPhone sales. The revenue growth has been driven by the record revenues from the Services business. The rapid growth of the Wearables business has also played a key role in this regard.
“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.”
During the earnings call, Apple revealed that the iPhone accounted for $25.9 billion of its total revenue of $53.3 billion. Its Services business raked in revenues of $11.5 billion, with the App Store posting record revenue numbers. The company is on track to double the revenue from its Services business by next financial year.
Apple Pay is also growing very fast, with monthly transactions growing by 4x. The service is also adding more new users than PayPal. During the earnings call, Apple’s CEO Tim Cook confirmed that Apple Card will launch in August.
Despite the negative sentiment in China, Apple saw iPhone sales improve in China. The company saw its Services and iPhone revenue go up in China by a notable margin. Overall though, iPhone revenues were down 12% from Q3 2018. However, the growth in the Mac, iPad, Wearables, and Services business were able to offset this.
Apple no longer reveals how many iPhones, Mac, or Apple Watch units it shipped every quarter. Thus, one needs to rely on the estimates provided by analyst firms like IDC and Canalys to deduce that number. Apple’s best to turn into a Services company seems to be paying dividends as it is making up for the slowdown in the iPhone sales.
What are your thoughts on Apple’s Q3 2019 earnings?