Apple reports strong iPhone sales for the holiday quarter

Apple reports strong iPhone sales for the holiday quarter
Apple has just released the results of its fiscal first-quarter which covered the holiday shopping season of October through December 2019. With Wall Street expecting the company to report iPhone revenue of about $52 billion for the three months, the actual number was $55.96 billion. That is the second highest quarterly revenue figure for Apple's iconic handset trailing only the holiday shopping season of 2017.

What this means is that all of the things that Apple did to improve the iPhone in 2019 such as increasing the battery life, taking photography to another level using computational imaging (Deep Fusion), and improving the new lines' protection from water and drops, all touched a chord with consumers. Back in September following the unveiling of the iPhone 11 family, we noted that Apple really listened to its fans and it has paid off with the 8% year-over-year gain in iPhone revenue. The new 2019 iPhones had a 98% satisfaction rate among U.S. consumers and U.S. iPhone revenue for the quarter set a new record. Meanwhile, after two consecutive quarters of growth, Apple saw iPad revenue decline by 11.2% year-over-year to $5.98 billion.

The Wearables unit remains Apple's fastest-growing division


The strong growth in the Wearables, Home and Accessories sector continued. This unit, which includes the popular Apple Watch and the wireless Bluetooth AirPods, generated revenue of $10.01 billion during the quarter, up 37% on an annual basis. That is slower than the 54% growth seen by the unit last quarter but it remains Apple's fastest-growing division. During the quarter, Apple introduced its premium AirPods Pro model with a new design, longer battery life, and Active Noise Cancellation.

The Services group, which Apple has been focusing on to take advantage of the large number of active iPhone units worldwide, saw revenue rise 17% to $12.72 billion. Apple hopes to generate $50 billion in Services revenue this fiscal year and at the fiscal Q1 pace it will just make it. This group includes the App Store, Apple Music, Apple Arcade, Apple TV+, Apple News+, Apple Pay, iCloud and Apple Care. The company says that it now has 1.5 billion active devices in use which we believe indicates that there are close to 1 billion active iPhone users globally.


Sales in China rose 3.1% on an annual basis to $13.58 billion during the quarter. Apple did well in Europe with sales rising 14.3% to $27.23 billion. In the Americas, the company took in $41.37 billion which was 12% higher than the previous year's figure. Of Apple's major regional units, only Japan reported lower revenue for the quarter.

For Apple's fiscal first quarter, the company had $91.82 billion in revenue and net income of $22.24 billion (an all-time record for Apple). That is an 11.4% rise in net income from last year's figure and works out to earnings of $5.04 a share. Apple CEO Tim Cook called it a "Blockbuster quarter" and after rising $8.74 during regular trading hours, Apple's shares tacked on an additional $3.76 to $321.45 after-hours after the report was released. That is a new all-time high for the stock.

Apple CEO Tim Cook, commenting on the quarterly report, said, "We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables. During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers and a great driver of our growth across the board."

Apple's estimates for the fiscal second quarter are wider than usual due to the possible effects of the deadly coronavirus that has hit China killing 100 people in that country. The company estimates that it will report revenue between $63 and $67 billion for the three months between January and March.

FEATURED VIDEO

34 Comments

42. Junito

Posts: 149; Member since: Feb 12, 2012

Meanwhile, Google is having difficulty selling Pixels. They need to stick to Android & search engines. Before going on the attack, please look at the financial release by then

22. whatev

Posts: 2476; Member since: Oct 28, 2015

They got what they deserve, congrats Apple

21. midan

Posts: 3292; Member since: Oct 09, 2017

This isn't surprising, like i said here when new iPhones came, there was big interest towards these new cameras and even users with iPhone X/XS wanted to upgrade. Without Pro cameras i would still use my X, that was only reason to upgrade from great X already. Let's see if the upcoming models still can make another big leap for a photography and videography.

18. Flynfree15

Posts: 42; Member since: Jan 16, 2020

I like apple, but not now... maybe after a year or two.

16. iczer

Posts: 161; Member since: Oct 14, 2015

Wow! almost $100 billion in revenue and net income of $22.24 billion! that is insane! Samsung, Huawei and everybody should learn how to run a tech business and make money from it! I'm pretty sure that Apple collects almost 100% of the profits of the smartphone industry.

17. Vancetastic

Posts: 1974; Member since: May 17, 2017

Yes, ridiculously high profits and margins are something to cheer if you're a consumer.

20. cevon3239

Posts: 248; Member since: Jan 01, 2020

Samsung makes plenty money. And is why Samsung products are in .ore homes than any other brand including Apple. All that production costs money, so samsung wont make as many profits as Apple. But at least Samsung does better things with its money. The Burg Khalifa, looks way better then that grounded spaceship, and it cost way less to build.. The Burg cost 1.5B to build and the spaceship was $5B. Not hard to see which one is the most innovative and revolutionary. But both are great in their own rank.

30. tbreezy

Posts: 286; Member since: Aug 11, 2019

They take about 66% to be exact, Samsung take about 17%, they could definitely learn a lot from Apple without a doubt.

37. cevon3239

Posts: 248; Member since: Jan 01, 2020

Why do other business have to do business like Apple? So Samsung should sell one phone, one tablet and charge through the nose for them? Because that is what Apple does. So Samsung should build a phone for $200 and sell it for $750 to rip people off? All these oems have ripoff products, but had the lions share of that. I dont want a OEM that concerned only about profit. Because when a company is om nky concerned about profit, they make crappy products that are limited, bend like paper, always have to be replaced and always needs something fixed. Apple products use to be steller. They are now not like they use to be.

9. meanestgenius

Posts: 23162; Member since: May 28, 2014

Some pretty solid numbers by Apple. I’m happy that Apple has realized sometime ago that hardware sales alone won’t carry the company forever. Taking advantage of their ecosystem through services for their large and loyal customer base was a very smart decision. iPad sales are suffering, which is likely due to slow upgrades and possibility cannibalization from the larger iPhones.

12. darkkjedii

Posts: 31816; Member since: Feb 05, 2011

I bought a 2018 12.9, and it’ll be with me for 5 years easy. I don’t update tablets too often.

14. meanestgenius

Posts: 23162; Member since: May 28, 2014

Yeah, me either. I have a 2018 9.7, and I don’t plan on updating it any time soon.

15. Vancetastic

Posts: 1974; Member since: May 17, 2017

Same here. I've only had two iPads in the last several years.

4. darkkjedii

Posts: 31816; Member since: Feb 05, 2011

I figured Gadgetpower would get going. He's waiting for his check from Apple.

6. Vancetastic

Posts: 1974; Member since: May 17, 2017

That's gotta be peaceboy, right? He's kinda funny sometimes.

11. darkkjedii

Posts: 31816; Member since: Feb 05, 2011

Same person.

1. gadgetpower

Posts: 354; Member since: Aug 23, 2019

Sgodsell must be sad again because Apple is nailing the smartphone profit share.

2. mackan84

Posts: 723; Member since: Feb 13, 2014

Don’t start it. “Most profit”, “Most sales”, “best benchmark”, “best camera”, “best UI”, “best display”... Bla bla no one wins in these arguments and that’s why they never end. At least see that there is no reason for trying.

3. Vancetastic

Posts: 1974; Member since: May 17, 2017

I don't know why people can't just use what they like without trashing everyone else's choice. Oh well.

5. darkkjedii

Posts: 31816; Member since: Feb 05, 2011

Right. I got love for iPhones and Notes. I love having both.

8. meanestgenius

Posts: 23162; Member since: May 28, 2014

I gotta say Darkk, I’m loving my new iPhone 11 Pro Max. So much so that I’ve switched to using it as my daily driver for now. Apple has made a really good device this time around. I’m missing some things on Android, so I’ve been searching for the “app equivalent” of the features I’m missing, but overall, it’s a dam good device.

10. darkkjedii

Posts: 31816; Member since: Feb 05, 2011

Very good device indeed, but there’s some things on my Note, that can be replaced, so I’m still carrying both. The Pro Max is just ad good, outside of what it can’t duplicate.

13. meanestgenius

Posts: 23162; Member since: May 28, 2014

Agreed. Apple needs to add a few more features to their iPhones, as I do still carry around one of my Android smartphones just in case, but using the iPhone primarily.

19. cevon3239

Posts: 248; Member since: Jan 01, 2020

Because Apple fans have to justify bragging about paying more to get less. To seem superior they always have to attack others. Let them celebrate for being ripped off for getting less. And after nearly a decade of having one of the worse cameras on a phones finally they get it right. Only to lose to the S20. Tech always leaps forward. But fans can't give up their ignorance, even for one day.

24. whatev

Posts: 2476; Member since: Oct 28, 2015

Can you cry less next time honey? It’s embarrassing

25. midan

Posts: 3292; Member since: Oct 09, 2017

"Let them celebrate for being ripped off for getting less." Ripped off? New iPhones had 98% customer satisfaction, i think we are very happy how we spent our money "And after nearly a decade of having one of the worse cameras on a phones finally they get it right" You are joking right? Every year for many years already iPhone have had among best cameras in the market. If the camera would have been bad i wouldn't use iPhone anymore.

26. whatev

Posts: 2476; Member since: Oct 28, 2015

Let’s both celebrate how Apple makes these frustrated trolls more bitter and miserable :)

35. cevon3239

Posts: 248; Member since: Jan 01, 2020

Everytime someone says something about Apple, you chime in with some stuff. Customer satisfaction means nothing to me. I read reviews of others, but they play little to my buying decision. I dont care about sales. What I care about is ease of use, capability that fits my need and the right price I expect. Just because you are ok with paying whatever something costs, that dowsnt mean it's the true value of its price. Samsung makes expensive phones too. I only buy an S or Note. Both cost as much as an iPhone. But for the same price, I get MORE battery, storage, faster charging, better quality headoh and new, charging cables, faster data transfers, faster modems, more features and capability and my prime still last 2 days on a single charge and charging from zero literally takes less than 60 mins. Everything I mention and then some is simply not true of an iPhone. Just because lots of people like the iPhone, doesnt mean I have too. I like the iPhone, I just refuse to buy something that doesn't fit my needs. If I am going to pay $1000 for a phone every year, like I have been doing for the past 3 years, I am buying what is a better value for the price. I see the iPhone as a RIP off. No one is telling you how to spend your darn money. Buy it, be happy. You are always saying something about what others use, but as soon as someone says something about what you use, you whine about it. Just move on bruh. I thi k phones like the Pixel and iPhone are complete rip9ffs because there are better options at equal price. That is a fact and all the customer satisfaction in the world wont change that. Apple and Samsung satisfactions rates are roughly the same, so you constantly bring it up means nothing at all. All you brag about is sales and other numbers that dont matter. Try to make a real argument. I own both an iOS product and an Android one. Both have their benefits and flaws. But they are certainly not equal. I love the iPhone itself. The iPhone X is my favorite design, excluding the notch. Its the software that I have the biggest issue ith. Videos show with everyday task, it takes considerably longer to accomplish simple tasks that on Samsung devices take 2 or 3 steps and on an iPhone they take 4 or 5.

31. Vancetastic

Posts: 1974; Member since: May 17, 2017

It's not just Apple fans. Read your own comment, for example.

39. Venom

Posts: 4137; Member since: Dec 14, 2017

Because some people just want to stroke their massive egos which is why things get heated instead of people acting like adults and just using what works best for them.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.
FCC OKs Cingular's purchase of AT&T Wireless