Early Access

10-QPeriod: Q3 FY2019

Apple Inc. Quarterly Report for Q3 Ended Jun 29, 2019

Filed July 31, 2019For Securities:AAPL

Summary

Apple Inc. reported net sales of $53.81 billion for the third quarter of fiscal year 2019, a slight increase of 1% compared to the same period in the previous year. This growth was primarily driven by strong performance in Wearables, Home, and Accessories, as well as the Services segment. However, iPhone sales experienced a year-over-year decline, impacting overall product sales. Profitability saw a slight decrease, with net income falling to $10.04 billion from $11.52 billion in the prior year's quarter. Despite this, the company continued its robust capital return program, repurchasing $17.0 billion of its common stock and paying $3.6 billion in dividends. Apple ended the quarter with a strong cash position of $50.5 billion, underscoring its financial resilience and ability to fund ongoing operations and shareholder returns.

Financial Statements
Beta
Revenue$53.81B
Cost of Revenue$33.58B
Gross Profit$20.23B
R&D Expenses$4.26B
SG&A Expenses$4.43B
Operating Expenses$8.68B
Operating Income$11.54B
Interest Expense$866.00M
Net Income$10.04B
EPS (Basic)$0.55
EPS (Diluted)$0.55
Shares Outstanding (Basic)18.28B
Shares Outstanding (Diluted)18.41B

Key Highlights

  • 1Total net sales for the quarter were $53.81 billion, a 1% increase year-over-year.
  • 2Services revenue grew by 13% to $11.46 billion, highlighting the increasing importance of this segment.
  • 3Wearables, Home, and Accessories segment revenue surged by 48% to $5.53 billion.
  • 4iPhone net sales decreased by 12% to $25.99 billion, primarily due to lower unit sales.
  • 5Net income decreased to $10.04 billion from $11.52 billion in the prior year's quarter.
  • 6Operating expenses increased by 11% to $8.68 billion, driven by higher R&D and SG&A spending.
  • 7Apple repurchased $17.0 billion of its common stock during the quarter, reflecting its commitment to returning capital to shareholders.

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