Apple Q2 Results Are In: Revenue Up 54 Percent, New Records

While the iPhone made Apple a household name, reaching over 1.5 Billion users in just the last few years, Apple’s Services today are driving the biggest growth

Today Apple has over 1.5 billion devices in use from iPhones to iPads, watches and more in use by over a billion people on the planet. Given we have over seven billion people on Earth, that puts Apple in the hands of one in seven people on the planet. These devices drive Apple’s business. While purchase of these devices, in particular iPhones, heralded a new age for Apple starting in 2007, today Apple’s services offered through these devices whether it is Fitness+ or Apple Music or even device care through Apple Care, drive the most revenue that is increasing every year.

“Apple is in a period of sweeping innovation across our product lineup and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world.”

— Tim Cook, Apple CEO

With strong cash flow of $24 billion and over $23 billion return on investment to investors, Apple can confidently make investments for long-term plans. Q2 2021 financial results are available at apple.com/investor/earnings-call for two weeks and consolidated statements can be found on Apple’s website and more information can be found at its investor relations website, investor.apple.com.

Apple Q2 Results In: Services Expand to $11.5 Billion

Apple’s announcement on April 30th of its fiscal results show strong service revenue income

While the company’s quarterly revenue at $58 billion was down by 5 percent from a year ago, service income is up significantly and growing. 61 percent of Apple’s Q2 earnings came from international sales. The full investor call is available for listening at www.apple.com/investor/earnings-call/ for up to two weeks. Apple has an installed base of over 1.4 billion active devices. View consolidated statements on Apple.com.

“We generated operating cash flow of $11.2 billion in the March quarter and continued to make significant investments in all areas of our business. We also returned over $27 billion to shareholders through share repurchases and dividends. Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $75 billion for share repurchases. We are also raising our quarterly dividend for the seventh time in less than seven years.”

— Luca Maestri, CFO, Apple

Apple’s board of directors declared a cash dividend of $0.77 per share of the Company’s common stock, up by five percent, payable on May 16, 2019 to shareholders by the close of business on May 13, 2019.

Apple offers the following information about its fiscal 2019 third quarter:

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

More information is available on Apple’s website.

Apple Will Be Part of the Breakdown of the Cable Bundle, Says Tim Cook

Tim Cook, Apple CEO, announced that Apple plans to participate in changes disrupting the cable bundle with Airplay 2, Original Content, Apps and More.

On Tuesday January 29th, Tim Cook shared some of Apple’s approach to television and original content without offering specific details. Apple’s CEO said that Apple has noticed "huge changes" in customer behavior, which Apple believes will "accelerate as the year goes by." Cook pointed out that Apple expects an accelerated breakdown of the cable bundle.

Apple intends to be part of this change, including the Apple TV that offers app support so that customers can watch television using apps as they wish and with AirPlay2 that will be offering support to third-party television sets, which will make for a “better” living room experience, according to Cook. He also explained that third-party video subscriptions available on the App Store offer Apple a way to "accelerate in the future" and help customers who wish to buy multiple services. Apple is working on its own original content, with some content available for free and other content available via streaming services and its TV app. Apple has also numerous television shows in the works currently and been signing deals with well-known industry talent such as Jason Katims and Justin Lin.

“Finally, original content, where we will participate. We’ve signed a multi-year partnership with Oprah. Today I’m not really ready to extend that conversation beyond that point. We’ve hired some people we have a super amount of confidence in, and they’re working really hard. We’ll have more to say on that later.”

— Tim Cook, Apple CEO

Apple is expected to have its streaming television service available for launch by the middle of April this year.