Apple barely manages to beat the projected earnings in Q1 of 2019 while iPhone sales continue to plummet

Apple released their Q1 earnings today and the company just managed to beat the projected earnings made by Wall Street. Apple is having a rough couple of months as the company is struggling to sell their newest iPhones. On top of that, the company was recently dethroned as the world’s valuable company by Microsoft who in turn was removed by Amazon.

Seeing this, Q1 of 2019 wasn’t all that bad for Apple. The company posted an EPS of $4.18 which was higher than the projected EPS of $4.17. The company also posted revenue of $84.3 billion which was higher than the projected revenue of $83.97 billion. Unfortunately, the company missed their projected revenue when it came to the Q1 iPhone sales. The company posted revenue of $51.98 billion which was lower than the projected revenue of $52.67 billion. Apple also recorded an increase in iCloud revenue which was up 40% YoY last quarter. Apple also said they have 85M monthly active users in three countries (U.S., Australia, and U.K.). Apple also recorded an increase in Wearables revenue by 50% in China.

Our customers are holding on to their older iPhones a bit longer than in the past. When you paired this with the macroeconomic factors particularly in emerging markets, it resulted in iPhone revenue that was down 15 percent from last year

– Tim Cook, CEO, Apple Inc.

Apple posted overall revenue of $84.3 billion which is 5% less than last quarter, making for the first annual revenue decline during a holiday season quarter since 2001. Apart from these, below is the breakdown of several products/services offered by Apple.

• iPhone: $51.98 billion vs. $52.67 billion (forecasted)
• iPad: $6.73 billion vs. $5.90 billion (forecasted)
• Mac: $7.42 billion vs. $7.42 billion (forecasted)
• Wearables, Home and Accessories: $7.31 billion vs. $7.33 billion (forecasted)
• Q1 services revenue: $10.9 billion, vs. $10.87 billion (forecasted)

Apple is certainly having a hard time pulling through and the competition from Chinese OEMs is not helping. With companies like Oppo and Vivo providing better specs at lower prices, Apple is having trouble selling their high priced iPhones. Unfortunately, things are looking good for other segments as well. Apple did post a better revenue than last quarter but it’s not enough to get them back to the top of the list. However, the positive earnings call did help the company to stay in the green on the Stock Market. Apple share prices saw a 6% increase just after the earnings calls and closed at around $165 during extended trading.