Apple’s financial report from the quarter ending December 2019 – iPhone revenue growth in the shadow of doubts about the corona virus
Team Tim Cook, the CEO of Apple regarding this report While expressing excitement over the announcement of the company’s highest revenue generation record to date, it is the result of strong demand for iPhone 11 and iPhone 11 Pro and the highest record for services and wearables of this company. According to Cook, at the time of the year-end holidays, the number of active installed devices of this company throughout the geographic distribution areas of Apple products has reached more than 1.5 billion, which, from the CEO’s point of view, is a strong evidence for the satisfaction, enthusiasm and commitment of users and It has been a factor for growth in all Apple products.
In this regard, Luca Maestri, Apple’s CFO, says: “The very strong performance of our business is driving [recording] the highest Net profit was $22.2 billion and generated operating cash flow of $30.5 billion. We also maintained our goal of achieving a net cash [flow] neutral position over time, returning nearly $25 billion to shareholders this quarter, including $20 billion in share repurchases and $3.5 billion in dividends and We have made its equivalents.
The increase in Apple’s annual income in terms of iPhone sales is one of the main driving factors in the unprecedented increase in Apple’s income this quarter, where after four consecutive quarters of revenue reduction in this sector, the company’s iPhones are finally growing. They have achieved acceptability in the field of income. From the total revenue of 91.819 billion dollars of Apple this time, the share of hardware products and services of Apple was 79.104 billion and 12.715 billion dollars, respectively, both compared to the figures recorded last year for these two sectors (73.435 billion and 10.875 billion dollars, respectively). have faced a significant increase.
Among the geographical regions, the American market still accounts for the highest share of the company’s product sales with a revenue of 41.367 billion dollars, which has increased by nearly 12% compared to last year. The European market is in the second place with an income of 23.273 billion dollars and an increase of 14%, and China (with an income of 13.578 and an increase of 3%) and Japan (with an income of 6.223 and a decrease of 10%) have taken the third and fourth places.
In the following, we will examine the amount of income and profit of various divisions of Apple in the quarter ending on December 28, 2019.
iPhone: increase in income after one year
Apple’s iPhones have experienced an unprecedented drop in terms of sales and revenue generation over the past year, for which almost no other example can be found since the introduction of the first iPhone to the market. In this period of time from the beginning of autumn 2018 (reflected in the title=”Apple’s financial report from the quarter ending in December 2018 – 15% decline of the iPhone in the best season of the year”>Apple’s financial report from the quarter ending in December 2018) until the beginning of autumn 2019 (reflected in Apple’s financial report for the quarter ending September 2019), the iPhone division’s revenue has experienced a marked decline each time for four consecutive quarters, to the point where the iPhone division’s revenue in Apple’s financial report from the quarter ending June 2019 For the first time in seven years, Apple’s total revenue fell below 50%. did
This situation has finally changed in Apple’s latest report from the last quarter of 2019. And with revenue of $55.957 billion, it not only exceeded Wall Street’s forecast of $51.5 billion, but also grew by 7.6 percent compared to the same time last year. The share of iPhone revenue from Apple’s total revenue this time reaches nearly 61%. Tim Cook attributed the high success of this category to the performance of iPhone 11 and iPhone 11 Pro, and mentioned them as the strongest collection of Apple iPhones to date.
iPad: Back on the decline
The tablet section of Apple which is in The previous financial report of this company, i.e. the quarter ending in September 2019, had a 16.8% increase in revenue, this time it returned to declining conditions and recorded revenue of 5.977 billion dollars, compared to the revenue of the same time last year, which is 6.729 billion dollars, with a decrease of 11 A percentage has been encountered. According to Apple, 93% of end users and 92% of business users have been satisfied with the iPad purchase.
Mac: Maintain steady state
Apple in the Mac computer sector has also failed to achieve growth in revenue generation and its revenue of 7.160 billion dollars from this segment compared to 7.416 billion dollars last year has faced a slight drop of 3%. Of course, Apple is not unhappy with this situation and has listed the introduction of the 16-inch MacBook Pro and the new Mac Pro as factors for a “strong quarter” for this category, and has announced that 93% of Mac and iPad customers are new in this quarter.
Wearables, Home and Accessories: Star of Revenue Growth
Apple’s wearables, home and accessories department, which includes some of the most popular and best-selling products of this company, including the Apple Watch and wireless earbuds AirPods and AirPods Pro is included, in the quarter leading to Desamire 2019 has the highest revenue growth among Apple products; The income of this collection has reached 10.010 billion dollars in this period of time, which seems to have exceeded Apple’s income in the Mac computer sector for the first time. This amount of income compared to last year’s income of 7.308 billion dollars has increased by nearly 37%, which is the highest growth among all other divisions of the Apple company, and according to Tim Cook, this collection is among the top 150 companies. Fortune (Fortune 150) accommodates.
According to Cook, the demand for Apple Watch Series 3 and the AirPods family has been so high that the company has had a difficult time meeting this demand, and of course, it still does not have an estimate to fully meet the market demand for the AirPods family!
Services and services: continuing the growing trend
Apple’s services and services department, which includes subsets such as App Store, Apple Music, Apple TV+, iCloud, Apple Pay, Apple Care and Apple Card, is still one of the rich sources of revenue generation in Apple. It is the second source of income for this brand after iPhone. In the quarter ended December 28, 2019, the services sector achieved an income equal to 12.715 billion dollars, which has increased by nearly 17% compared to 10.875 billion dollars obtained at the same time last year. Among the interesting statistics, we should mention the sales statistics of the App Store on New Year’s Day, which reached a record of 386 million dollars with a 20% increase compared to last year. The number of non-free subscribers to Apple’s services and services currently stands at 480 million, an increase of 120 million over the previous year, and is expected to increase to 600 million by the end of the year.
with The existence of brilliant statistics and promising results of Apple in almost all subsets of this company, a new concern, has made the continuation of this positive trend and breaking records again in the coming seasons a little ambiguous; The spread of the corona virus in China and the quarantine of parts of this country apparently had a direct result in Apple’s business, because in addition to restrictions on traveling to China and reducing the working hours of stores, some manufacturing plants in this country also have to control this. The virus has been temporarily shut down. In this regard, Tim Cook spoke about the urgency of the situation and creating some doubts for the coming days and declares this as the reason for the wider range announced for Apple’s revenue generation in the next season. The spread of this virus has also left a negative impact on the reopening of factories after the Chinese New Year.
According to the CEO of Apple, the company has suppliers in the area infected with the corona virus in China, namely Wuhan, although for each of these suppliers, other alternatives have been considered in other regions.
Apple as usual at the end This report has also published its forecast of the financial results of the second quarter of the financial year 2020 of this company in accordance with the first quarter of 2020 as follows:
– Income between 63 and 67 billion dollars
– Gross profit margin between 38 and 39 percent
– Operating expenses between 9.6 and 9.7 billion dollars
– Other income/expenses up to $250 million
– Tax rate around 16.5%