Apple Posts Record $23.8 Billion Q2 Services Revenue, as iPhone, iPad Sales Drop

Apple May 2 reported all-time record second-quarter (ended March 30) services revenue exceeding $23.8 billion, which was up 14.1% from services revenue of $20.9 billion in the previous-year period. Segment revenue is up 12.7% to $46.9 billion from revenue of $41.6 billion in the previous six-month period.

Services revenue includes sales of movies and TV shows on iTunes, the App Store, Mac App Store, Apple Music, Apple Pay, Apple TV+, Apple Arcade and Apple News+, among other digital retail segments.

Overall, Apple posted quarterly revenue of $90.8 billion, down 4% year over year from $98.4 billion in the prior-year fiscal period. Outside of Europe, geographical revenue fell, led by a 10.5% drop in iPhone sales to $45.9 billion, from $51.3 billion in the previous-year period. Sales of iPad tablets dropped almost 17% to $5.5 billion, from $6.6 billion.

Mac sales increased 4% to $7.4 billion, from $7.1 billion.

Despite the segment fiscal hiccups, CFO Luca Maestri said the board authorized $110 billion in share repurchases.

“Given our confidence in Apple’s future and the value we see in our stock, we are raising our quarterly dividend for the 12th year in a row,” Maestri said in a statement.

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Apple Q4 Services Revenue Reaches Record $22.3 Billion

Apple Nov. 2 reported record fourth-quarter (ended Sept. 30) services revenue of $22.3 billion, up more than 16% from revenue of $19.18 billion during the previous-year period.

Services revenue includes sales of movies and TV shows on iTunes, the App Store, Mac App Store, Apple Music, Apple Pay, Apple TV+, Apple Arcade and Apple News+, among others.

Separately, Apple also posted record Q4 revenue for iPhone unit sales, which were not able to offset overall products segment revenue decline of more than 5% to $67.18 billion from revenue of $70.95 billion in the previous-year period. Total quarterly earnings increased 13% to $1.46 billion from $1.29 net income in the previous-year period.

“We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030,” CEO Tim Cook said in a statement.
CFO Luca Maestri said the active installed base of devices reached a new all-time high across all products and all geographic segments, due in part to the strength of the Apple ecosystem and ongoing customer loyalty.
“During the quarter, our business performance drove double digit EPS growth, and we returned nearly $25 billion to our shareholders, while continuing to invest in our long-term growth plans,” Maestri said.

Apple Posts Record Q1 Revenue, Topping $111 Billion

Apple Jan. 27 reported record quarterly revenue for its services segment, which includes sales of movies and TV shows on iTunes, the App Store, Mac App Store, Apple Music, Apple Pay, Apple TV+, Apple Arcade and Apple News+, among others. The segment generated $15.8 billion in revenue for the first quarter, ended Dec. 26, 2020, compared with $12.7 billion in the previous-year period.

When factoring in more than $95 billion in product revenue, Menlo Park, Calif.-based Apple generated record $111 billion in revenue, up 21% from revenue of $91.8 million in the previous-year period.

Apple saw green throughout its product categories, with iPhone sales up 17% to $65 billion; Mac sales up 21% to $8.7 billion; iPad revenue up 40% to $8.4 billion; wearables (Apple Watch) up 29.5% to $15.8 billion.

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“We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season,” CEO Tim Cook said in a statement.

 

Apple iPhone Q1 Revenue Drops 15%, Services Sales Top Record $10.9 Billion

Apple Jan. 29 reported first-quarter (ended Dec. 29, 2018) revenue from the iPhone fell 15% to $52 billion from $61.1 billion during the previous-year period.

Apple attributed the lower than anticipated revenue to sluggish sales in China and emerging markets.

“We believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, U.S. dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements,” CEO Tim Cook said in a statement.

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While the downturn forced Apple to revise its fiscal guidance, the company continued to fire on all cylinders in other business segments.

Apple services revenue, which includes sales of digital movies and TV shows on iTunes and Apple TV, generated a record $10.9 billion – up nearly 20% from last year.

The segment, which also includes AppleCare, Apple Pay, licensing and other services, is on track to double in size from 2016 to 2020.

Overall, Apple posted quarterly revenue of $84.3 billion, a decline of 5% from the year-ago quarter, and quarterly earnings per diluted share of $4.18, up 7.5%. International sales accounted for 62% of the quarter’s revenue.