Apple 2019
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Apple 2019 2nd Quarter Results

Apple released its financial results for its 2019 second quarter.  The quarter ended on March 30, 2019.  The company posted an impressive quarterly revenue of $58 Billion.  Interestingly, international sales accounted for 61% of the quarter’s revenue.  Apple is a strong global company and that it’s not surprising that most of its revenue comes from outside the US, says Gaurav Mohindra from Chicago, Illinois.

Apple Iphone

Wall Street took kindly to the positive news as Apple’s stock was trading higher at 214.21 a share in the morning of May 1.  This accounts for a 6.73% increase in share price based off the positive earnings data and positive future outlook.

Apple’s strong quarter was the result of having 1.4 billion active devices.  This number is simply staggering, says Gaurav Mohindra.  Few companies have such a strong existing base of users to promote new services and products.  Apple also referred to continued success in wearables and the Home Market.  Home automation is becoming increasingly popular for users.  Amazon’s Alexa, Google, and Apple – offer services to automate televisions, lights, and other home technologies by using your existing devices.  This market is still considered relatively new and there should be increased growth in this area.  Apple indicated that they will share further details on upcoming technologies at Apple’s 30th Annual Worldwide Developers Conference. 

Apple further demonstrated its commitment to shareholders by returning over $27 Billion to shareholders through share repurchases and dividends.  This clearly illustrates Apples confidence in its company and brand. 

Apple provided the following guidance for its 3rd quarter, 2019:

  • revenue between $52.5 billion and $54.5 billion
  • gross margin between 37 percent and 38 percent
  • operating expenses between $8.7 billion and $8.8 billion
  • other income/(expense) of $250 million
  • tax rate of approximately 16.5 percent

As Apple enters into streaming they will start developing their own content – similar to Netflix, Amazon, and Hulu.  But they have also negotiated content deals with HBO, Starz, and Showtime.  This new service will complement Apple Music and Apple Pay, along with other new services they will provide.

Apple is poised to move beyond the device everyone has in their pocket – to the provider populating those devices too.

Gaurav Mohindra from Chicago, Illinois: Apple family of products from phones, tablets, laptops, desktops, home devices, and others – have built an ecosystem for the continued growth of their services.  As they further enter into entertainment and other areas they should continue to see strong results and loyal customers.