Quarterly revenue fell 5% year-on-year, coming in at US$84.3 billion, with international sales accounting for 62% of the revenue.
Services revenue hit a high of US$10.9 billion, up 19% over the prior year while revenue from Mac and wearables (up 9%) and home and accessories (33%) also grew. iPad revenue was up 17%.
“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said Apple chief executive Tim Cook.
"That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”
Apple chief financial officer Luca Maestri said: “We generated very strong operating cash flow of US$26.7 billion during the December quarter and set an all-time EPS record of US$4.18.
“We returned over US$13 billion to our investors during the quarter through dividends and share repurchases. Our net cash balance was US$130 billion at the end of the quarter, and we continue to target a net cash neutral position over time.”
For the second quarter of the financial year, Apple provided the following guidance:
Apple provided the following guidance for its fiscal 2019 second quarter:
- revenue between US$55 billion and US$59 billion;
- gross margin between 37% and 38%;
- operating expenses between US$8.5 billion and US$8.6 billion;
- other income/(expense) of US$300 million; and
- tax rate of approximately 17%.