Apple Inc. Quarterly Report for Q1 Ended Dec 28, 2019

Summary

Apple Inc. reported strong financial results for the fiscal first quarter ending December 28, 2019. Total net sales increased by 9% year-over-year to $91.8 billion, driven by significant growth in iPhone and Wearables, Home and Accessories, and a robust 17% increase in Services revenue. This top-line growth translated into a healthy increase in profitability, with net income rising to $22.2 billion, up from $19.9 billion in the prior year quarter, and diluted earnings per share climbing to $4.99. The company demonstrated a strong ability to generate cash from operations, amounting to $30.5 billion, while actively returning capital to shareholders through substantial share repurchases ($20.0 billion) and dividend payments ($3.5 billion). The company highlighted continued strength in its Services segment, which is becoming an increasingly important contributor to revenue and profitability. The Wearables, Home and Accessories category also showed impressive growth, indicating consumer demand for Apple's expanding ecosystem of devices and related products. Despite some headwinds in certain product categories like Mac and iPad due to product cycle timing, the overall performance indicates robust demand for Apple's products and a growing reliance on its high-margin Services business.

Key Highlights

• 1Total net sales increased 9% year-over-year to $91.8 billion.
• 2iPhone sales grew 8% to $55.9 billion, and Wearables, Home and Accessories sales surged 37% to $10.0 billion.
• 3Services revenue continued its strong growth trajectory, increasing 17% to $12.7 billion.
• 4Net income rose to $22.2 billion from $19.9 billion in the prior year quarter.
• 5Diluted earnings per share (EPS) increased to $4.99 from $4.18 in the prior year quarter.
• 6Operating cash flow generation remained strong at $30.5 billion.
• 7Apple repurchased $20.0 billion of its common stock and paid $3.5 billion in dividends during the quarter.

Frequently Asked Questions