Apple Sets Holiday Records for iPhone Activations and App Store Sales

Posted on January 3, 2019 by Mehedi Hassan in Apple with 7 Comments

Apple announced last night it could be $9 billion short of the expected revenue for the first fiscal year of 2019. The announcement led to a huge backlash, with Apple’s share price continuing to decline throughout the day.

Apple is, obviously, in damage control mode after last night’s announcement. Bloomberg obtained an email sent by Tim Cook to Apple employees where Cook outlined some of Apple’s successes over the recent period.

Cook stated that iPhone activations on Christmas Day hit a new record in the United States and Canada. That’s a pretty massive accomplishment, but Cook didn’t share much of the metrics, so it’s unclear whether the new record for iPhone activations was fueled by sales of new iPhones like the iPhone XS and iPhone XR, or whether it was because of sales of older models.

“We expect to set all-time revenue records in key markets including the US, Canada and Mexico, Western European countries including Germany and Italy, and countries across the Asia-Pacific region like Korea and Vietnam. Our worldwide installed base of active devices also hit a new all-time high, reflecting the loyalty of our customers and their appreciation for the work you do,” Cook said in the memo.

Apple today published a press release boasting the success of its App Store over the holidays, too. App Store brought in $1.22 billion in revenue over the holidays, according to Apple. More importantly, the App Store brought in $322 million alone on New Year’s Day 2019, setting a new single-day record for the store.

“The App Store had a record-breaking holiday week and New Year’s Day. The holiday week was our biggest week ever with more than $1.22 billion spent on apps and games, and New Year’s Day set a new single-day record at more than $322 million,” said Phil Schiller, Apple’s senior vice president of Worldwide Marketing.

Apple continues to boast about the growth in revenue from its Services business, which obviously includes the App Store, Apple Music, etc. The company is still blaming the shortfall in revenue on the Greater China economy, where the sales of its products apparently slowed down due to economic conditions. And considering there have been rumours about low iPhone XR sales, that may not be completely accurate.

Apple is trying its best to hit back here, and I’m guessing we will see some more announcements next week.

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Comments (7)

7 responses to “Apple Sets Holiday Records for iPhone Activations and App Store Sales”

  1. Skolvikings

    Apple is a publicly traded company. So they have to issue things like sales forecasts. And while it hurts stock price when Apple has to revise those forecasts because markets like China are soft, it doesn't necessarily mean Apple is losing a lot of ground in places like North America.

  2. provision l-3

    Apple didn't announce that it could be 9 billion off of it's expected revenue. Apple's original guidance is for the quarter was 89-93 billion. So, if they had hit any number from 89 to 93 they would have made their guidance. The revised number is 84 which is 5 billion below meeting their guidance not 9 billion. Good lord, the math is really not that hard.

  3. dontbe evil

    LOL try to defend apple at any cost

  4. MikeGalos

    In reply to dontbe_evil:

    Understandable as many of them doubled down on their fandom by investing in AAPL stock and lost 9% of their investment literally over night and nearly 40% since October. That's a pretty painful thing to watch and more so to experience especially while they deal with holiday expenses. They're going to be a little cranky and defensive.

  5. Chris Payne

    In reply to dontbe_evil:

    And Apple haters are trying to paint Apple in the worst light possible.

  6. Greg Green

    In reply to dontbe_evil:

    Apple critics are trying hard to avoid math and history. The quarter will still put revenues 3 to 4 times higher than MS, and anything above 78B will make it the second highest Apple quarter.