Pharmacy Website
Clinic Website
TabletWise.com TabletWise.com
 
Apple's revenue decreases 5% as compared to last year.

Apple Faces a Decline in Revenues

By   •  

Recently Apple released its first-quarter report revealing its financial results for 2019. This report was announced on 29 January at California.

According to the first quarterly financial statement, the revenue recorded is $84.3 billion (approx. ₹60,400 crores). There is a decrease of 5% revenue as compared to last year.

Quarterly diluted earning per share (EPS) is recorded as $4.18 (approx. ₹300) which is an increase of 7.5% since last year. The net sales for a product like Mac have increased by 9% whereas, for iPad, sales grew to 17%.

Tim Cook, CEO of Apple believes that the most downfall of revenue and a worldwide decline in revenue occurred from Greater China. A major decline in iPhone revenue by 15% made a huge impact on worldwide sales.

The international sales contributed to 62% of the total first-quarter revenue. The international sales accounted for $84 billion (approx. ₹6,01,900 crores) whereas the year before these sales were $88 billion (approx. ₹6,30,600 crores).

Tim Cook says “While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide.”

Cook also said, “Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”

Luca Maestri, CFO of Apple said, “We generated very strong operating cash flow of $26.7 billion (approx. ₹1,91,300 crores) during the December quarter and set an all-time EPS record of $4.18 (approx. ₹300).”

Maestri also said “We returned over $13 billion (approx. ₹93,190 crores) to our investors during the quarter through dividends and share repurchases. Our net cash balance was $130 billion (approx. ₹9,31,900 crores) at the end of the quarter, and we continue to target a net cash neutral position over time.”

On 2 January 2019, Tim Cook released a letter to the investors of the company providing an expected estimate into the first quarter revenue for 2019.

In the issued letter, Cook estimated the revenue to be approximately $84 billion (approx. ₹6,01,900 crores). He also expected the number of shares used in calculating diluted earning per share to be 4.77 billion (approx. 477 crores).

For the second quarter revenue, Apple has set certain instructions. The operating expenses are expected to be between $8.5 billion (approx. ₹60,930 crores) and $8.6 billion(approx. ₹61,650 crores). The revenue is also expected to be between $ 55 billion (approx. ₹3,94,300 crores) and $59 billion (approx. ₹4,23,000 crores).

Apple’s board of directors announced a cash dividend of $0.73 per share to the shareholders. This dividend will be payable on 14 February to shareholders on record as per the close of business on 11 February.

Latest News

TabletWise.com