Apple today reported its fourth-quarter revenue in 2019, prompting the company to earn $ 64 billion in revenue. The news reflects the general trend with Apple over the past year: iPhone sales are down, but service revenues hit a high all the time. In other words, it seems that Apple's strategy to emphasize hardware sales and focus more on subscription services works.
$ 64 billion in revenue increases 2 percent year over year compared to Q4 2018, with quarterly earnings per diluted share of $ 3.03, up 4 percent from Q4 2018.
But iPhone sales – still Apple's largest money maker – continued to decline compared to last year, bringing in $ 33.36 billion in revenue compared to $ 36.76 billion in last year, a decline of about 9.2 percent. On the flip side, Apple reported that it had reached a record high for its service business, bringing in $ 196.5 billion in the fourth quarter (compared with $ 11.46 billion last quarter and $ 10.6 billion the year before). . Apple says it now has "over 450 million paid subscriptions across services on our platform, compared to over 330 million just a year ago."
Mac revenue was also down nearly 5 percent to $ 6.99 billion , though iPads ($ 4.65 billion in revenue) and Apple's wearables / home / accessories device ($ 6.52 billion in revenue) both saw significant jumps compared to last year.
Specifically, Apple's new service record comes before the launch of Apple TV Plus, perhaps the biggest effort yet to sell consumer subscriptions (though the number includes Apple's new Arcade gaming service, which launched in September).
"We ended a groundbreaking fiscal 2019 with our highest fourth-quarter revenues ever, driven by accelerating growth from Services, Wearables and the iPad," commented Tim Cook, Apple's CEO, in a press release. "With customers and reviewers excited about the new generation of iPhones, today's debut of new, noise-canceling AirPods Pro, the long-awaited arrival of Apple TV + just two days away, and our best line of products and services ever, we're very optimistic about considering what the holiday quarter has in store. ”
Apple's next quarter will be interesting as the first quarter tends to include the bulk of holiday sales, as well as the fact that it will be the first to include the upcoming TV Plus service. The company forecasts revenue for Q1 2020 between $ 85.5 billion and $ 89.5 billion, compared to $ 84.3 billion it earned in Q1 2019.