Apple has announced the financial results for its second fiscal quarter of 2019 (Q2 2019).
The Cupertino giant posted quarterly revenue of $58 billion, down 5% over the same period last year. In addition, quarterly earnings per diluted share totaled $2.46, down 10%. Analysts expected $2.37 earnings per diluted share on revenue of $57.5 billion.
International sales accounted for 61% of the company’s second quarterly revenue.
In a statement, CEO Tim Cook confirmed Apple’s installed base now totals over 1.4 billion devices. At $11.5 billion, the company set an all-time record for Services (Apple Music, Pay, iTunes Store, Mac Store, etc.), exceeding analysts’ expectations. Cook added its Wearables, Home, and Accessories category set a new March quarter record.
“We delivered our strongest iPad growth in six years, and we’re as excited as ever about our pipeline of innovative hardware, software, and services.”
Apple generated an operating cash flow of $11.2 billion in Q2 2019. The Cupertino giant also returned over $27 billion to shareholders through share repurchases and stock dividends. In addition, the company’s Board has authorized an additional $75 billion for share repurchases.
The Board of Directors has also declared a cash dividend of $0.77 per share of Apple’s common stock, an increase of 5%. The dividend is payable on May 16th to shareholders.
Breaking down products revenue, iPhone sales totaled $31 billion, underscoring disappointing growth. The company had expected stronger smartphone sales. In addition, Apple sold $5.5 billion in iMacs, more than $5.1 billion in wearables, and $4.9 billion in iPads. The second generation AirPods earbuds proved successful. Apple Music also saw double-digit growth.
Underscoring the increasing demand of Apple Services, Luca Maestri, the company’s Chief Financial Officer, explained,
“We have 390 million paid subscriptions, all growing in strong double-digits. And we expect the number of paid subscriptions to pass half a billion in 2020.”
In an earnings call earlier this morning, Cook added,
“We had our best quarter ever for the App Store, Apple Music cloud services, and our App Store search ad business, and we set new March quarter revenue records for AppleCare and Apple Pay.”
The company has yet to reveal the new subscription figures for Apple Music.
Featured image by Matias Cruz (CC by 2.0).