Bulletin: Apple Inc.'s iPhone Revenues May Be Down 15%, But Non-iPhone Businesses Show Strength In Latest Earnings

SAN FRANCISCO (S&P Global Ratings) Jan. 30, 2019--S&P Global Ratings said today that it has lowered its expectations for Apple Inc. (AA+/Stable/A-1+) for fiscal 2019 following weak first-quarter financial results. Earnings were in line with the company's pre-announcement in early January, with revenues down $4 billion or 5% year over year (3% on a constant currency basis) to $84.3 billion. The iPhone segment accounted for all of the decline and more, falling by $9 billion, or 15% year-over-year, to $52 billion. We estimate units declined near 20% during the quarter. In contrast, non-iPhone segments generated strong results, growing 19% year over year with all segments, including iPad and Mac, which is above historical average. The services segment growth slowed but

...SAN FRANCISCO (S&P Global Ratings) Jan. 30, 2019--S&P Global Ratings said today that it has lowered its expectations for Apple Inc. (##+/Stable/A-1+) for fiscal 2019 following weak first-quarter financial results. Earnings were in line with the company's pre-announcement in early January, with revenues down $4 billion or 5% year over year (3% on a constant currency basis) to $84.3 billion. The iPhone segment accounted for all of the decline and more, falling by $9 billion, or 15% year-over-year, to $52 billion. We estimate units declined near 20% during the quarter. In contrast, non-iPhone segments generated strong results, growing 19% year over year with all segments, including iPad and Mac, which is above historical average. The services segment growth slowed but still expanded 19% year over year as the installed base of active users reached 1.4 billion. Others, owing to the success of Apple Watch and AirPods, grew 33%. Apple's free operating cash flow reached $23 billion for the quarter...

Bulletin