Apple hoped to offset slowing demand for iPhones by raising the prices of its most important product, but that strategy seems to have backfired after sales sagged during the holiday shopping season.
The Company posted quarterly revenue of $84.3 billion, a decline of 5 percent from the year-ago quarter, and quarterly earnings per diluted share of $4.18, up 7.5 percent. After all, Apple over the years has consistently and impressively delivered jaw-dropping revenue, monstrous iPhone sales, and of course, record-setting profits that simply put most every other company on the planet to shame. Analysts, meanwhile, were anticipating revenue to fall in the $84 billion range with EPS somewhere around $4.17. Quarterly revenue in Greater China was $13.1 billion, down from almost $18 billion one year ago. "Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments".
He said Apple is rethinking how it prices the iPhone outside the United States after largely setting the price in US dollars, which made the phones more expensive in local currencies. Apple warned in early January that the quarter's sales would miss targets it gave in November.
On a related note, Apple won't be disclosing unit sales for any of its products anymore. During the company's earnings call, Cook was quick to laud the iPhone XS, XS Max and XR as the "best" Apple has ever shipped, but pinned its low iPhone sales on lackluster performance in Greater China just as quickly. So if you're keen on seeing how Mac and iPad sales are doing, well, you're out of luck.
Revenue from iPhone® declined 15 percent from the prior year, while total revenue from all other products and services grew 19 percent.
Apple's Mac and Wearables (meaning Apple Watch and AirPods) businesses are also on the upswing, growing 9% and 33%, respectively.
Apple said it expects revenue between $55 billion and $59 billion for the current quarter ending in March, largely below analysts' average estimate of $58.83 billion, according to IBES data from Refinitiv.
The company's shares rose 6 percent to $163.50 in after-hours trading. Apple said its net cash position - its cash minus its debt - was $130 billion, an increase from $123 billion in the previous quarter.