Apple iPhone revenues decline 15% during the fiscal first quarter

Apple iPhone revenues decline 15% during the fiscal first quarter
Shares of Apple soared 5.4% or $8.32 in after-hours trading to $154.68 following the company's release of fiscal first quarter earnings. While Apple is no longer reporting the number of iPhone units sold in the period, the tech giant announced that revenue from iPhone sales declined to $51.9 billion from $59.8 billion during the same quarter a year ago. That works out to a 15% decline. Apple says that it now has 1.4 billion active devices, an all-time high.

Services revenue hit an all-time quarterly high at $10.9 billion, up 19% year-over-year. The most profitable segment for Apple, the company aims to hit $50 billion in annual services revenue by 2020. This group includes Apple Pay, the App Store, Apple Music, AppleCare, iTunes and more. Revenue from tablet sales rose 17% over last year, while a new all-time quarterly record for revenue was set by the Wearables, Home and Accessories segment. That business includes the Apple Watch and the HomePad smart speaker.

Fiscal first quarter revenue slightly surpassed revised estimates of $84 billion. Earlier this month, Apple lowered its guidance from the original $89 billion-$93 billion it forecast. That lead to a 10% drop in Apple's stock price the very next day. Earnings per share met Wall Street estimates of $4.18 a share, up 7.5% year-over-year and a new company record. Net income, at $19.96 billion, was lower than the year earlier's $20.07 billion. Apple was able to set a record for EPS because it has been constantly buying back its shares.

With the U.S.-China trade war, and rising Chinese nationalism taking bites out of Apple's business in the country, Apple rang up $13.17 billion in China during the three month period. That was off 27% from the $17.96 billion Apple grossed in China during the 2018 fiscal first quarter.


Cook blamed the drop in iPhone sales on the strong dollar, which made the iPhone more expensive in China and in other foreign markets. The executive also said its discounted battery program, the end of carrier subsidies and the longer upgrade cycle were also factors. 

For the fiscal second quarter, which covers January through March, Apple expects revenue to fall in between a range of $55-$59 billion.

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26 Comments

1. Atechguy0

Posts: 918; Member since: Aug 03, 2018

Since Apple's ASP went up as well, then that means they sold a lot less actual iPhone units.

2. darkkjedii

Posts: 31102; Member since: Feb 05, 2011

iPhones took a pretty big hit, other segments cushioned the blow though. Take this as a shot in the arm Apple, and give the consumers a better iPhone. Wallets are speaking. MiGA Make iPhone Great Again.

5. Spacekid

Posts: 16; Member since: Jan 17, 2019

No thanks, we've had enough of apple. Time to make it a case study.

7. darkkjedii

Posts: 31102; Member since: Feb 05, 2011

I haven't had enough of Apple. I'm not an Apple hater, and want to see them make better devices, which is good for competition. Apple just needs to stop resting on its laurels, and get back to innovative thinking.

12. c.m.s

Posts: 236; Member since: Dec 10, 2017

Nothing wrong with the devices, never been as happy with an iPhone as my current iPhone X, but they do need to adjust the prices. It has increase _alot_ in my country the last two years.

24. L0n3n1nja

Posts: 1568; Member since: Jul 12, 2016

Personally dislike iPhones but the last thing I want is for Android to have no competition.

3. Spacekid

Posts: 16; Member since: Jan 17, 2019

That services revenue is not gonna last if people don't buy iphones.

6. lyndon420

Posts: 6796; Member since: Jul 11, 2012

They'll need to rely on subscription percentages for bottom line services revenue, and maybe decrease the size of free cloud storage available. Apple could also charge monthly fees for some of their less buggy/more popular apps.

13. Dr.Phil

Posts: 2389; Member since: Feb 14, 2011

Depends. Apple does make Apple Music accessible on Android devices, so it really is dependent on whether their new TV service will follow suit or not. And how good said services are. I’ve heard Apple Music is horrible on Android but still the app has 10 million installs (versus 100 million of Spotify which goes to show they have a long uphill climb).

8. Raito

Posts: 80; Member since: Aug 15, 2014

Waiting for funny comments from fanboys

9. cncrim

Posts: 1588; Member since: Aug 15, 2011

I buy if it is 120-125 per share.

10. djcody

Posts: 228; Member since: Apr 17, 2013

PA please correct your info "Revenue from iPhone® declined 15 percent from the prior year, while total revenue from all other products and services grew 19 percent" this is directly from apple website 15% not 13.2https://www.apple.com/newsroom/2019/01/apple-reports-first-quarter-results/

14. Alan01

Posts: 619; Member since: Mar 21, 2012

Yes, I noted the number from Apple's report, but when you compute it based on the numbers they gave, it came out to 13.2%. After thinking about it, I assume that Apple should know best, so I corrected the figure. Still, it doesn't jive with Apple's own numbers. Regards, Alan

23. djcody

Posts: 228; Member since: Apr 17, 2013

I think the 15% come frome total number phones sold, but they provide number of value phones sold. With higher prices that number was around 13%. Thats why doesn't match, its just my conclusion. Have a good day sir

11. notfair

Posts: 745; Member since: Jan 30, 2017

growth is not possible anymore, who would've thought! f**king greedy rich people. you know what? find aliens and try to sell them iphones.

15. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

And the decline will continue!

16. midan

Posts: 2915; Member since: Oct 09, 2017

It was their second highest q results ever. Also shareholders liked the numbers. They are now seeing the big picture.

17. koioz

Posts: 145; Member since: Nov 29, 2018

Yea, because their products are crap. Turtle modem and lead acid battery

18. midan

Posts: 2915; Member since: Oct 09, 2017

"Apple says there are over 900 million iPhones in use" Of course you can get that kind of userbase with crappy products

20. mootu

Posts: 1525; Member since: Mar 16, 2017

Apple lies through it teeth about it's userbase. Cook himself said the other week that it increases the userbase when someone trades in an old iphone for a new one, that it adds a new device to the userbase. What he didn't say is that the old device is not removed from the userbase, they class said device as still in commision even though most traded in phones are scrapped for recycling So these traded in devices should not be included in userbase stats.

21. midan

Posts: 2915; Member since: Oct 09, 2017

sure they do sure they do ;) hard to accept the truth?

22. midan

Posts: 2915; Member since: Oct 09, 2017

by the way where all that huge growth in service revenue came? are ghosts buying apps with those recycled iPhones? ;)

19. whatev

Posts: 2284; Member since: Oct 28, 2015

All their segments grew, the iPhone was the only one that went down mostly due to China, and they had their second best quarter ever, shares went up, I love when illiterate android trolls like the big turd above fail to read articles or understand them at all, I guess you need to take some English lessons or something

25. domfonusr

Posts: 1085; Member since: Jan 17, 2014

Either way you see it, still a bang-up job by Apple... not the biggest quarter ever, and certainly a decline from last year, but ASP is up, revenue was still pretty strong, and investors are generally going to be happy about it.

26. JRPG_Guy

Posts: 144; Member since: Jan 13, 2019

Seems like pricing your phones above $1000 aint a great strategy

* Some comments have been hidden, because they don't meet the discussions rules.

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