The results for the October-December period were slightly above analysts' expectations that were lowered after Cook's January 2 warning.
The WSJ said that Apple's hard month began when it cut its sales guidance for the first time in more than 15 years, projecting revenue would come in at least $5 billion lower than expected. It also highlights the fact that we may have reached a saturation point with iPhones for the time being.
Apple shares rose nearly 4 percent in extended trading on Tuesday.
So it was unlikely we'd hear about the AirPods 2 and AirPower mats, though it's interesting to note that they may avoid the obstacles Apple ran into with iPhone sales this past quarter. It said it now has 1.4 billion active devices, an increase of 100 million from past year, and that 900 million of those are iPhones.
That's one reason why Cook has been touting the robust growth of Apple's division that collects commissions from paid apps, processes payments, and sells hardware warranty plans and music streaming subscriptions.
He continued: "We are as confident as ever in the fundamental strength of our business". Analysts surveyed by FactSet had been anticipating revenue of about $59 billion. And so we think we can do $55 to $59 [billion].
Additionally, Apple was impacted by the ban on new video games in China, which was in place through most of 2018.
FQ1 earnings per share (EPS): $4.18. An analyst firm quickly filled in the gap, estimating that 65.9 million iOS handsets shipped in the last quarter of 2018, down significantly. During the March quarter of past year, Apple's revenue checked in at $61.1 billion.
Typically, Apple's earnings report for the holiday quarter is a sight to behold. "In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad". That would bring prices closer to where they were a year earlier - in other words, they're price cuts. In the same period a year earlier, it pulled in $61.1 billion from selling iPhones. It ultimately forced Apple to delay Mac Pro sales for several months, according to the report. The company reported a profit margin of 62.8% for services.
Revenue from the services business jumped 19% to a record $10.9bn in the quarter, which ended on the 31 December.
Revenue from iPhone declined 15 percent from the prior year, while total revenue from all other products and services grew 19 percent.
That growth rate is at the low end of the services-business growth rate over the past two years, which has ranged between 17% and 34%.
"Roughly 60 per cent of our services business is outside the United States, and as you know, the U.S. dollar has appreciated in recent months", Maestri said. Apple sales fell 27 per cent in Greater China and now make up about 15 per cent of total revenue. The effect will be more this quarter on currency than it was in the last quarter, Cook added. Earlier this month, Apple Chief Executive Officer Tim Cook warned that the company would miss its holiday quarter sales target. Previously, the company had expected to post sales of between $89 billion and $93 billion.
Apple shares were trading up 5.5 percent in extended trading Friday, at $163.21.