Apple saw record fourth quarter sales in emerging markets like India. The company announced financial results for the fiscal 2019 fourth quarter ended September 28, 2019. During the quarter, Apple posted quarterly revenue of $64 billion. The quarter saw an increase in revenue of 2 percent over the same period last year. Apple says international sales accounted for 60 percent of the quarter’s revenue. The iPhone maker has stopped offering breakdown of unit sales during the quarter. The revenue from products stood at $51.5 billion while services revenue reached an all-time high of $12.5 billion.
The revenue from iPhone sales during the quarter stood at $33.36 billion. While iPhone revenue trajectory has improved, it was still down by 9 percent from the previous year. The revenue from Mac sales was also marginally down to $6.99 billion. The iPad and Wearables sales were higher over the same period last year. The iPad revenue came in at $4.65 billion while that from wearables, home and accessories accounted for $6.52 billion. “I’m thrilled to say that we set Q4 records for wearables in each and every market we track,” Apple CEO Tim Cook said during the earnings call.
Ahead of the earnings release, Apple was expected to delve deeper into its India business. However, the company announced that it generated an all time revenue record for Mac in the US and in India. It did not offer breakdown of models that did well in the market. “More than half of the customers purchasing Macs during the quarter were new to Mac, and the active installed base of Macs again reached a new all time high,” Apple CFO Luca Maestri clarified during the call. While iPhone sales decline, Apple seems to have found new growth verticals in the form of wearables and services.
During the fiscal fourth quarter, services revenue came in at $12.5 billion, a growth of 18 percent over last year. Apple said it beats the previous record set in the June quarter by more than a billion dollars. “This isn’t a local phenomenon. We saw double digit services revenue growth and all time records in all five of our geographic segments,” Cook added. The company said it saw record revenue from multiple services categories including the App Store, AppleCare, Music, Cloud Services and our App Store search ad business.
Apple is set to launch Apple TV+ as its original video subscription service on November 1 in over 100 countries. The service will debut with original TV shows such as The Morning Show, See and others. Customers who have purchased Apple devices starting September 10 will be able to opt in for free 12 months of Apple TV+. While the initial reviews have been lackluster, Apple is expected to scale the service further. Apple also mentioned that Arcade, its game subscription service, has received “overwhelmingly positive” feedback.
While Apple is pivoting to services, over 50 percent of its revenue comes from iPhone sales. With the launch of iPhone 11 Series, the next quarter could be even bigger for iPhone sales. “We saw great customer response to the launch of iPhone 11, 11 Pro, and 11 Pro Max at the end of the quarter,” Maestri confirmed during the call. Apple is projecting revenue between $85.5 billion and $89.5 billion during the fiscal 2020 first quarter. Apple’s record first fiscal quarter revenue is $88.3 billion set in 2018. It needs to be seen whether iPhone 11 springs a new upper circuit for Apple revenues.