Apple CEO Tim Cook: We Feel Good About Resolution With Qualcomm

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During today's earnings call covering the second fiscal quarter of 2019 (first calendar quarter), Apple CEO Tim Cook was asked about Apple's settlement with Qualcomm.

While Cook declined to provide color on how this will affect Apple's development plans in the future, he did say that Apple is satisfied with the resolution.

We're glad to put the litigation behind us and all the litigation around the world has been dismissed and settled. We're very happy to have a multi-year supply agreement and we're happy that we have a direct license arrangement with Qualcomm that was important for both companies. We feel good about the resolution.

Apple and Qualcomm reached a settlement in mid-April and agreed to drop all litigation in multiple countries around the world. Apple made a one-time payment to Qualcomm and inked a six-year licensing agreement to use Qualcomm's patented technologies.

The settlement also included a chipset supply agreement, and Qualcomm is expected to provide the 5G chips that Apple will need to introduce 5G connectivity in its 2020 iPhones.

While rumors have suggested Apple is going to add 5G in 2020, Apple itself has not confirmed those plans and Cook did not provide details on Apple's 5G timeline when asked. He did, however, say that Apple aims to get new technologies into products as soon as it can.

We look at a lot of things on the different technologies and try to look at and select the right time that things come together and get those into products as soon as we can.

After Apple and Qualcomm announced their settlement agreement, Intel said that it was dropping out of the smartphone modem chip market entirely, with no plans to manufacture 5G chips.

Tags: Qualcomm, Apple vs. Qualcomm

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Apple's Wearables, Home and Accessories Category Sets New Q2 Revenue Record of $5.1 Billion

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Apple CFO Luca Maestri today said that Apple's Wearables, Home, and Accessories category, which includes devices like the AirPods and the Apple Watch, set a new March quarter revenue record of $5.1 billion.

According to Maestri, AirPods demands continues to be "off the charts," while earlier in the call, Apple CEO Tim Cook said AirPods are a "cultural phenomenon."


As for Apple Watch, it continues to be the best selling smart watch in the world, with three quarters of Apple Watch sales during the quarter going to first time Apple Watch owners.

The Apple Watch saw its best quarterly results for a non-holiday quarter, and Apple's wearables business was up close to 50 percent in Q2 2019 and is now the size of a Fortune 200 company.

Tag: earnings

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Apple Sees All-Time Record Response to New iPhone Trade-In Initiatives

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During today's earnings call for the second fiscal quarter of 2019 (first calendar quarter), Apple CEO Tim Cook said that Apple's iPhone trade-in efforts have been highly successful.

According to Cook, Apple saw an all-time record response to the company's trade-in promotions, and Apple saw more than four times the number of trade-ins from the year-ago quarter.


Apple in November began offering a limited-time promotion that provided up to $100 in additional credit when trading in an iPhone. The program allowed customers to buy a new iPhone XR, XS, or XS Max at a more heavily discounted price when trading in an older device.

Apple is no longer running that specific program, but the trade-in page continues to promote new iPhone pricing that's available when trading in an old iPhone.

Tag: earnings

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Apple Sees Strongest iPad Growth in Six Years in Q2 2019

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Amid declining iPhone sales, Apple today said in its Q2 2019 earnings report that the iPad saw its strongest growth in six years.

Apple's iPad sales hit $4.9 billion in Q2 2019, up from $4 billion in the year-ago quarter, marking a 22 percent increase in revenue.


Apple in October 2018 introduced all new iPad Pro models that eschew the Touch ID Home button in favor of a Face ID biometric system, allowing for a larger display area.

In March, Apple added to its iPad lineup with a new $499 iPad Air option, which serves as a middle tier offering between the iPad Pro and the $329 sixth-generation iPad.

Apple also introduced a new version of the iPad mini, marking the 7.9-inch tablet's first update in several years. Both the iPad Air and the iPad mini 5 support the Apple Pencil, enabling Apple Pencil integration across Apple's entire iPad lineup.

Tag: earnings

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Apple's Services Revenue Hits New All-Time High of $11.5 Billion in Q2 2019

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Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, and AppleCare, has become an increasingly important revenue driver for Apple amid stagnating iPhone sales, and Apple has been focusing more than ever on its services category.

During the second fiscal quarter of 2019, Apple's services segment brought in $11.5 billion in revenue, up from the $9.9 billion services earned in the second quarter of 2018. Apple set a new all-time record for services revenue this quarter.


Apple in March announced a slew of new services that will boost services revenue even higher in the future. Apple News+, a $9.99 per month service that provides unlimited access to more than 200 magazines, has already launched, and later this year Apple is introducing Apple Arcade, Apple News+, and a new Apple Card credit card.

Apple has said that it is aiming to reach $14 billion in services revenue per quarter by 2020, and the company is well on its way to reaching that goal.

Tag: earnings

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Apple CEO Tim Cook Says Performance in China Has Improved Over Previous Quarter

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Apple today announced its earnings results for the second fiscal quarter (first calendar quarter) of 2019, and ahead of the company's upcoming earnings call, Apple CEO Tim Cook shared some remarks on Apple's results with CNBC.

According to Cook, Apple's performance in China improved over the previous quarter and saw greater strength towards the end of the quarter.


A sales tax cut in the country decreased the price of Apple products, and Apple also made its own pricing adjustments in the country. Cook also told CNBC that the trade relationship between the U.S. and China had improved, resulting in a "much better" tone.

"The tone is much better than it was in the November-December timeframe. I think that affects consumer confidence in a very positive way," Cook said.

Apple had $10.22 billion in sales in its Greater China category, which includes Taiwan and Hong Kong.

Apple reported revenue of $58.02 billion and earnings per share of $2.46. Apple's guidance for the third fiscal quarter of 2019 is $52.5 to $54.5 billion, higher than analyst expectations and an indication that iPhone sales in China are stabilizing.

Tags: China, earnings

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Apple Reports 2Q 2019 Results: $11.56B Profit on $58B Revenue as Services Revenue Hits All-Time High

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Apple today announced financial results for the second fiscal quarter of 2019, which corresponds to the first calendar quarter of the year.

For the quarter, Apple posted revenue of $58.0 billion and net quarterly profit of $11.6 billion, or $2.46 per diluted share, compared to revenue of $61.1 billion and net quarterly profit of $13.8 billion, or $2.73 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 37.6 percent, compared to 38.3 percent in the year-ago quarter, with international sales accounting for 61 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.77 per share, up from $0.73. The dividend is payable on May 16 to shareholders of record as of May 13.

In addition to the increase in the dividend payment, Apple says it has authorized another $75 billion for share repurchases.


This is the second quarter since Apple changed the way it reports its results, with the company no longer providing unit sales data for iPhone, iPad, and Mac. As a result, Apple is only providing revenue figures for its various segments, leaving analysts to estimate unit sales based on their own calculations.

“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,” said Tim Cook, Apple’s CEO. “We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”

Apple's guidance for the third quarter of fiscal 2019 includes expected revenue of $52.5-54.5 billion and gross margin between 37 and 38 percent.


Apple will provide live streaming of its fiscal Q2 2019 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call starts at 2:00 PM Pacific - No need to refresh

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Tag: earnings

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