Apple opens new chapter as iPhone sales fall and stock sinks

Ann Santiago
January 30, 2019

If Apple ever had ambitions of moving its iPhone or more Mac assembly to the United States, the tale of a tiny screw might have derailed that.

The most recent holiday quarter, though, is a little bit different. No, the sky isn't falling, but Apple's bottom line was hit hard by poor performance across its entire product line in China.

For the quarter ending in December, Apple's busiest due to the holiday shopping season, Apple reported revenue of $84.3 billion, slightly above analysts' average estimate of $84 billion. Analysts, meanwhile, were anticipating revenue to fall in the $84 billion range with EPS somewhere around $4.17. Global sales accounted for 62 percent of the quarter's revenue.

Apple CEO Tim Cook is hopeful US-China trade tensions will ease soon.

Apple's iOS install base now stands at 1.4 billion devices, which has helped send services revenue to record highs, at $10.9 billion for the quarter, up 19% year over year.


During Apple's Q1 earnings call, Cook touched on foreign exchange issues, mentioning local currency decline in Turkey of 33% in 2018, caused Apple to lose $700 million Dollars. Oh yeah, amusing thing about that. As announced on Apple's last earnings call, the company did not report Q1 2019 unit sales for any of its products. Arguably a move Apple should have implemented long ago, the reasoning is that an arbitrary three-month snapshot of iPhone sales doesn't necessarily provide an accurate gauge of the vibrancy of Apple's business.

Apple's iPhone revenue declined 15 percent year over year to $51.9 billion (£39.5 billion). Revenue from Mac® and Wearables, Home and Accessories also reached all-time highs, growing 9 percent and 33 percent, respectively, and revenue from iPad® grew 17 percent.

Apple's share price has dropped by around one third since October, amid investor concerns that buyer appetite for iPhones is weakening.

Investors reacted positively, elevating Apple's stock by more than 4 percent to $160.40 in extended trading after the report came out. During the March quarter of previous year, Apple's revenue checked in at $61.1 billion.

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