Apple has announced financial results for its 4Q 2019 that is ended on September 30, 2019. The Company posted quarterly revenue of $64.0 b...
Apple has announced financial results for its 4Q 2019 that is ended on September 30, 2019. The Company posted quarterly revenue of $64.0 billion, an increase of 2 percent from the year-ago quarter, along with a net quarterly profit of $13.7 billion, and quarterly earnings per diluted share of $3.03. In contrast, Apple earned a revenue of $62.9 billion and a net quarterly profit of $14.1 billion, or $2.91 per diluted share, in the year-ago quarter.
Despite iPhone revenue continued to decline by 9.2%, other hardware businesses (iPad, Mac and other products) maintained growth, and service business revenue expanded by 18% year-on-year, boosting Cupertino's Q4 revenue to a new record. The service business has become the second-largest engine to drive Apple's revenue growth. Since the beginning of this year, Apple has continuously released a number of services such as Apple News+ magazine subscription, Apple Arcade games subscription, Apple TV+ video subscription, Apple Card business, etc., and plans to further expand the business.
Despite iPhone revenue continued to decline by 9.2%, other hardware businesses (iPad, Mac and other products) maintained growth, and service business revenue expanded by 18% year-on-year, boosting Cupertino's Q4 revenue to a new record. The service business has become the second-largest engine to drive Apple's revenue growth. Since the beginning of this year, Apple has continuously released a number of services such as Apple News+ magazine subscription, Apple Arcade games subscription, Apple TV+ video subscription, Apple Card business, etc., and plans to further expand the business.
It is worth stating that the quarter's Apple wearable and accessories business soared 54%, reaching $6.5 billion, and the revenue even exceeded that of the iPad. Cook also mentioned in the earnings conference call that AirPods' revenue for the quarter hit a new high, also three-quarters of Apple Watch's sales came from new users. It is expected that with the launch of AirPods Pro, the company's Wearable business earnings will continue to climb in the fourth quarter:
“We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad,” said Tim Cook, Apple’s CEO. “With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store.”Apple expects revenues of $85.5 billion to $89.5 billion in the next quarter, a significant increase from the $84.3 billion in the downturn in the same period last year, and is expected to break the record of $88.3 billion in quarterly revenue for the same period in fiscal 2017. This optimistic expectation also makes the market feel reassured. As of the quarter, Apple's reserve cash totaled $205.9 billion, down 2.2% year-on-year. Apple buyback $18 billion in stocks this quarter and issued a $3.5 billion dividend, which also played a positive role in the stock valuation. Compared to Apple under the rule of Steve Jobs, who was too lazy to please investors, and never pay dividends, Tim Cook is quite generous to Wall Street.
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