WTF? Apple iPhones shrank by more than $ 22 billion in fiscal policy & # 39; 19 Register

Apple has always been able to conjure up some kind of magic – be it hardware, software or services based – that captures the imagination and wallets of loyal users. But in fiscal policy & # 39; 1919, Apple performed a completely different act, a disappearing act: it managed to make $ 5 billion of sales revenue go away.

This should always be something of an annus horribilis for Apple after the world's most valuable shiny things manufacturer reported a Q1 – historically the busiest period of the year – that was below seasonal norms. China did not play ball, and the channel had failed to change the expected number of iPhones.

Things did not improve in Q2; came flat on an annual third quarter comparison (PDF); but showed some signs of improvement in Q4 (PDF) figures released yesterday.

Revenues for Apple's final quarter of the fiscal year ended September 28 increased by 2 percent to $ 64.040 billion. Product sales were $ 51[ads1].53 billion, down from $ 52.3 billion and services – a strategic focus for Apple – grew to $ 12.51 billion from $ 10.6 billion.

For the quarter, the problem area of ​​iPhones fell again, this time by more than 10 per. cents to $ 33.362 billion; Macintosh machines were down 4.75 percent to $ 6.991 billion; iPads jumped 14.4 percent to $ 4,665; wearables, home and accessories (W, H&A) swelled 35.2 percent to $ 6.52 billion; and services ballooned to $ 12.51 billion, a 15 percent increase.

CEO Tim Cook described the September quarter as the "high end of our expectations" and a record, "even despite a predicted nearly $ 1 billion currency pull".

He said that if investors (if that's the operative word) discounted the destabilizing effect of the iPhone on total revenue, Apple's revenue was actually up 17 percent. In any case, said the Teflon exec, the latest phone models were "hugely popular" and "unparalleled" by previous models, and there was a "significant surge in demand."

Earlier in Apple's Q1, Cook accused China of a decline in iPhone sales, but there was no such update last night. Apple this year trimmed the prices of its phones to spur demand.

On Services – Apple's way of earning more money from its expansive user base – App Store, AppleCare, Music, Cloud Services and the App Store search ad biz all played a role in double-digit growth.

Elsewhere in services, Cook also confirmed that Apple Card customers will be able to use it to buy a new iPhone and "pay for it over 24 months with zero interest". They will also get 3 percent cash back on that phone purchase and pay no fees.

Apple Arcade was launched last month, so it's still in its early beginnings, and of course it's Apple News and Apple TV +.

W, H&A was lifted by Watch, AirPods and Beats headphones. The iPad was enhanced by the Pro version and can be further aided by iPadOS, which has the same foundation as iOS.

Net profit came in at $ 13.68 billion, down from $ 14.12 billion, partly due to higher R&D spending, along with increased sales, general and admin (S, G&A) costs.

And the fiscal year?

All this is well and good, but movements for the entire fiscal policy were much more dramatic: annual revenues fell by more than $ 5 billion to $ 260,174 billion, down 2 percent. After division, iPhone revenue plunged 13.68 percent to $ 142.38 billion; Mac increased slightly to $ 25.74 billion from $ 25.198 billion; iPad brought in $ 21.28bn against $ 18.38bn the year before; (W, H&A) generated $ 24.48 billion, up 40 percent; and services reached $ 46.29 billion from $ 39.74 billion.

Cook said: "We are incredibly proud of our accomplishments during a remarkable fiscal 2019, a year in which we crossed $ 100 billion into the United States for the first time."

It was also a year when the largest the seller began to flop and where business in Greater China, Europe and Japan shrunk. Not a vintage, not Tim, not a vintage.

The high point slipped to $ 55,255bn, down from $ 59,531. Again, an increase in fixed costs including R&D and S, G&A played a role here, as did falling sales.

For the next quarter, Q1 – a key for Apple – revenues are expected to reach between $ 85.5 billion to $ 89.5 billion, higher than the $ 84.3 billion reported the previous year. Cook hopes it will kickstart something of a better fiscal policy & # 39; 20. ®

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