Apple’s earning report by the numbers

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Apple financial results on an iPad Pro
A dive into Apple’s most recent financial results shows what’s really happening with the company.
Photo: Ed Hardy/Cult of Mac

Taking a close look at Apple’s financial results during the first three months of this year in hard numbers shows how the company is changing. Services are getting more important to its bottom line, and so are iPads. While iPhone is still a big part of Apple’s business, it’s not as significant as it used to be.

Check out these charts that demonstrate with a glance how the changes play out.

iPhone sales slowing further

Apple saw a 15 percent year-over-year drop in iPhone revenue during the final quarter of 2018, and in the first quarter of this year it was off 18 percent.

That’s a drop from $38 billion in revenue during the first three months of 2018 down to $31 billion in the same period of this year.

Revenue from iPhone sales including Q2 2019
iPhone sales have had it tough for 6 months.
Chart: Ed Hardy/Cult of Mac

On this chart, remember that the January-March quarter is Q2 on Apple’s financial year. So compare the most recent Q2 figures to the past three years, noticing that it’s lower than any of them.

We don’t yet know how many iPhone units Apple shipped last quarter because the company no longer announces that figure. Analysts will weigh in with their estimates soon, though.

iPad sales are back on the upswing

Revenue from iPad sales grew strongly last quarter when compared to the same period of 2018. Apple took on 22 percent more from iPad sales. Unfortunately, this doesn’t some close to offsetting the drop in handset demand, but it still helps..

Revenue from iPad sales including Q2 2019
iPad had its strongest Q2 in many years.
Chart: Ed Hardy/Cult of Mac

Notice that at $4.8 billion, Q2 tablet revenue is higher than it’s been since at least 2016. Much of that is a result of the popular new models introduced in 2018.

Apple no longer reveals how many iPads it ships each quarter, either.

Services are where it’s at

Money coming in from offering services like the App Store and Apple Music is also growing strongly. The company took in $11.5 billion from this category in Q2, up from $9.2 billion in the same period of 2012.

Apple revenue by type of device or service
This chart really shows how Apple’s business is changing.
Chart: Ed Hardy/Cult of Mac

Increases in revenue from Services and iPad sales, coupled with a decrease in income from iPhone, made handsets less important to Apple’s bottom line last quarter.

Sales of wearables, including Apple Watch and AirPods, are doing well too.

Apple is doing fine… in some regions

Apple’s overall revenue in Q2 was up slightly in the Americas and Japan, but not elsewhere in the world. Slow iPhone sales in Greater China have received a great deal of attention, but Apple’s overall revenue from Europe is down year-over-year as well.

Apple quarterly revenue by region
At least Americans are still enamored with Apple.
Chart: Ed Hardy/Cult of Mac

There’s room for hope in China, as CEO Tim Cook today gave multiple reasons for optimism on this region.

The bottom line

Global revenue from all of Apple’s operations in Q2 2019 totaled $58 billion, down 5 percent from the $61.1 billion the company took in during Q2 2018.

Apple total revenue including Q2 2019
Total revenue in the first three months of 2019 is down, but not down that far.
Photo: Ed Hardy/Cult of Mac

Notice that revenue for last quarter is significantly higher than it was in Q2 2017 or Q2 2016. Still, the revenue drop when compared to the same span in 2018 is something the company can hardly be sanguine about.

That said, Apple remains extremely profitable, if not as much as it was in Q2 of 2018. In the most recent January-to-March period, the company earned $11.6 billion, a decrease of 16 percent.

Apple net income including Q2 2019
Keep any doomsaying in perspective: Apple is still a very profitable company.
Chart: Ed Hardy/Cult of Mac

Again, notice that total profit from last quarter was quite a bit higher than it was in Q2 2017 and Q2 2016.