Apple third quarter sales hit £44.3bn


Apple have today announced its financial results for the third quarter of 2019, where the company posted quarterly revenue of £44.3bn

This is an increase of 1% from the year-ago quarter and international sales accounted for 59% of the quarter’s revenue.

While earnings per share fell 6.8% to $2.18, the decline wasn’t as bad as had been expected. The group also confirmed it expects its fourth-quarter revenue to hit between £50.1bn to £52.6bn, which is better than many had been hoping for.

The shares rose 4.3% in after-market trading following the news.

Tim Cook, Apple’s CEO commented: “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.

“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.”

Luca Maestri, Apple’s CFO said: “Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6bn.

“We returned over $21bn to shareholders during the quarter, including $17bn through open market repurchases of almost 88 million Apple shares, and $3.6bn in dividends and equivalents.”

Industry reaction

George Salmon, Equity Analyst at Hargreaves Lansdown

The breakdown of sales isn’t what investors would have been hoping for, with growth led by a better than expected showing from Mac sales while Services, pitched as a significant growth driver, slightly disappointed.

Nonetheless, it’s still reassuring to see Apple’s top line return to growth after two consecutive quarters of declines. While China is still proving a drag on sales following January’s dramatic profit warning, investors will also have been pleased to hear of a marked improvement in sales trends, which has surely fed into the main plus from these numbers, the notably upbeat outlook for Q4.

Apple’s next big push, its TV Plus streaming service, is due to launch in the Autumn. While it’s unlikely to have the power to move the dial at Apple just yet, you can be sure executives at Netflix will be waiting with baited breath to see if Apple can seize a slice of the fast-growing streaming market.