Oct 30, 2019

Apple: iPhone 11 off to "very, very good start"

Apple CEO Tim Cook introducing the iPhone 11 Pro. Photo: Apple

Apple delivered a generally positive earnings report on Wednesday, with CEO Tim Cook telling Reuters that iPhone 11 sales are off to a "very, very good start."

Why it matters: The iPhone is the bulk of Apple's business and critical to driving demand for its other products.

Apple's services and accessories businesses, two fast-growing areas for the company, grew somewhat faster than analysts had been expecting.

By the numbers:

  • Apple reported revenue of $64 billion, up 2% from a year earlier, and per-share earnings of $3.03, up 4%.
  • Services revenue totaled $12.5 billion, up from $10.6 billion at the same time last year.
  • Wearables and accessories were $6.5 billion, up from $4.2 billion a year earlier.
  • iPhone sales were $33.4 billion, down from $36.8 billion a year ago.
  • Mac sales were just below $7 billion, down from $7.3 billion in the prior year.
  • For the current quarter, which goes through December, Apple forecast revenue of between $85.5 billion and $89.5 billion, roughly around the range of what analysts were expecting.

Shares of Apple were up slightly in after-hours trading, changing hands recently at $245.70, up $2.44 or 1%.

On its conference call with analysts:

  • Apple announced that the U.S. Census would be collecting using hundreds of thousands iOS devices to securely collect population data.
  • The company will also allow those with its Apple Card credit card to buy an iPhone interest free over 24 months.

Go deeper

As iPhone sales fall again, Apple eyes 5G as the answer

Photo: Anusak Laowilas/NurPhoto via Getty Images

Apple delivered a generally positive earnings report on Wednesday, with CEO Tim Cook telling Reuters that iPhone 11 was off to a "very, very good start," despite sales falling 9.2% in the quarter, continuing a pattern that has been in place for the past year.

Why it matters: The iPhone is the bulk of Apple's business and critical to driving demand for its other products, but a report from Bloomberg, citing unnamed sources, said Apple expects iPhone sales to return to growth next year, thanks to the introduction of 5G.

Go deeperArrowOct 31, 2019

Regulators investigate Apple Card's algorithms for gender bias

Photo: Apple

State regulators in New York are looking into whether Apple Card is violating any laws by giving some spouses lower credit limits than their mates.

Background: It all began with a series of tweets that went viral by well-known software engineer (and Ruby on Rails creator) David Heinemeier Hansson, complaining that he was given 20 times as much credit as his spouse (even though she had a higher credit rating).

Go deeperArrowNov 12, 2019

Apple will spend $2.5 billion to alleviate California housing crisis

Tim Cook attends the global premiere of the Apple TV series "The Morning Show" in New York last week. Photo: Roy Rochlin/WireImage

Apple CEO Tim Cook, unveiling a $2.5 billion plan to help alleviate California's housing availability and affordability crisis, told Axios in an interview that Apple feels "a profound responsibility" to the region where it was born and thrived.

  • "It’s just unsustainable," Cook said. "This problem is so big that the public sector cannot do it alone."
Go deeperArrowNov 4, 2019