If there is something more boring than a quarterly financial report? A rhetorical question, but in this case, the answer is, oddly enough, will be positive. If this report Apple about a fourth quarter drama in 2019, I wouldn’t call it boring. Much of the world is much boring.
In 1997-98 the quarterly report of Apple Computer was more interesting. In a hopeless desperate situation when in addition to Macs, Newton and eMate with the company did not have anything that could generate income, reduced (for a living) the composition of the company quarter after quarter profit. 20, 30, 40 million. Amid continuing falling sales and lack of demand in the market. Return to the leading position in the industry paid for with the blood of thousands of Apple employees. It was then, struggling with doubts and temptations (in other companies they would have paid more for less), and they have overcome inertia and spin the flywheel in the opposite direction. Today a powerful force of inertia keeps Apple afloat, and it seems that no incorrect actions of those who run the business in our days is not able to harm it, but this is an illusion.
If quarterly reports are interesting, then trouble. Something goes wrong. But let’s order: October 30, 2019, according to the requirements of the law on public companies, Apple reported financial results for the fourth quarter of fiscal 2019, ending 28 September. October, November and December is the first quarter of fiscal 2020, with what I congratulate all of us. The conference was held by Apple CEO Tim cook and chief financial officer Apple Luca Maestri, the role of the compere took over to Nancy Paxton, senior Director of worldwide investor relations. It was a record fourth quarter in the history of the company, on account of which came to $ 64 billion, 2% more than in the previous fourth quarter. Net income (after taxes and all the costs to ensure viability of the company) amounted to 13.7 billion, 4% more than last fourth quarter. That is, all right?
On what and how much was earned by Apple in July-September
The report structure has changed again. Now at the top level it is divided into two articles, the “Products” (i.e., iPhone, Mac, iPad and “Wearable, accessories and the goods for the house”) and “Services”. The Germans, the French and the Americans from Apple came to office, never ceased to wonder that we have the word “Products” are shops where they sell food. In our case we are talking about a different type of food. All Products, taken together, brought the Apple of 51.5 billion (a year ago – 52,3); “Services”– 12.5 billion a year ago, they brought 18% less, only 10.6 billion. The total number of subscribers compared to the previous year increased by almost half, but many of them are still “free period”, hooked on services like future drug addicts on the needle.
The iPhone brought Apple 33.4 billion, which is 9% less than in the same quarter last year, but Tim added that iPhone 11, sales of which began at the end of the reporting period, sold record numbers, more than any of his predecessors (the figures, however, have not led), and 11 iPhone Pro and iPhone 11 Pro Max is the most advanced and sophisticated in the history of Apple. That is, they are not so good – we conclude we. A “-9%,” according to Tim, are encouraging. The next section will tell you why – Tim does not deceive. Revenues from sales of Macs fell by 5%, they are Apple earned only 7 billion (we all know what the reason, isn’t it?). But iPads, Apple brought in 17% more revenue, $ 4.7 billion, and “Wearables and other” – do 50% as much as 6.5 billion. Among the highest income iPad brought iPad Pro, and nearly half of the income from the “Wearables and other” provided the Apple Watch. How much have you had to sell the Apple Watch to profit from them were comparable with the profits from the iPad?
Fighting nineteenth year
Income for the 2019 fiscal year (which lasted from 1 October 2018 and 28 September 2019), according to preliminary data – 260.2 billion dollars, which is 5 billion less than in fiscal year 2018 (265,6 billion). The products brought in 2019 213,9 billion, and in 2018 225,8 billion dollars. With “Services” the reverse situation, they brought in 2019 46.3 billion in 2018 – a total of 40.0. In January, Tim cook promised that by the end of 2020, the annual income from services will reach or exceed $ 50 billion, it seems that the promise will be fulfilled.
Once when the income and profit of the company was three orders of magnitude less, in the same quarter Apple lost a billion dollars. It was the losses, the company is lost in (though about a quarter of this amount went to the purchase of NeXT), and only in the year the losses amounted to about half a billion. Until this outrage is still far, and it seems that even despite the mistakes and downdrafts, the company holds. Income fell for some measly 5 billion, the figure is 2.5%.