Apple Reports Q3 Earnings of $53.8 Billion Ahead of New iPhones

The iPhone earned $25.99 billion, less than half of their business.

Ahead of the launch of all-new iPhones in September, Apple this week reported its Q3 2019 earnings, and they seem relatively strong. The company has reported $53.8 billion profit, an increase of one percent year-over-year. This translated to a $2.18 price per share.

“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” said Tim Cook, Apple’s CEO. “These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services, and several new products.”

“Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6 billion,” said Luca Maestri, Apple’s CFO. “We returned over $21 billion to shareholders during the quarter, including $17 billion through open market repurchases of almost 88 million Apple shares, and $3.6 billion in dividends and equivalents.”

While Apple doesn’t report specific numbers any longer in regards to its product sales, it does report on revenue per product category. This quarter saw the iPhone collect $25.99 billion, down from $26.47 billion year-over-year. This is perhaps the most important stat to pay attention to in Apple’s earnings as it means this is the first time since 2012 the iPhone has represented less than half of the company’s entire business.

That doesn’t mean it’ll remain this way for long. Like I said, in two months time, we’ll have new iPhones with more cameras, bigger batteries, and possibly higher price tags. Every year, when new iPhones arrive, customers rush out to buy them, so don’t expect Apple’s smartphone division to remain very small for long.

Another important statistic within Apple’s earnings is the Services category. According to the company, this quarter saw services collect $11.46 billion. This number will continue to grow as well thanks to new services launching this fall including Apple TV+, Apple Arcade, and Apple Card. We didn’t get any specific numbers on how well its current services like Apple Music and iCloud are doing, but they fall somewhere in the pot.

Rounding things off, the Mac division made $5.82 billion, the iPad made $5.02 billion, and other miscellaneous products (wearables, smart home, accessories, etc.) earned $5.53 billion.

Apple says it predicts to collect revenue somewhere between $61 billion and $64 billion next quarter after it launches its new round of products and services.

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