*By Chloe Aiello* Apple spiked in extended trading on Tuesday after reporting earnings and revenue that pleased Wall Street. Apple ($AAPL) reported earnings per share of $4.18 on revenue of $84.31 billion, just exceeding the expectations of analysts surveyed by Thomson Reuters for earnings of $4.17 per share on $83.97 billion in revenue. Earnings increased year-over-year, thanks partially to [Apple's generous share buy-back program](https://www.wsj.com/articles/the-investment-that-cost-apple-9-billion-in-2018-11545925184?mod=hp_lead_pos2), but revenue slid about 4.5 percent from the prior year. Apple’s reported revenue beat guidance the tech behemoth issued in early January, but easily missed the $89 billion to $93 billion revenue range Apple guided toward in November, when it last reported earnings. “While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” Apple CEO Tim Cook [said in a statement](https://www.apple.com/newsroom/2019/01/apple-reports-first-quarter-results/). Apple's Chief Financial Officer [Luca Maestri last quarter announced Apple would no longer break out iPhone unit sales](https://cheddar.com/videos/apple-trying-hide-something-reporting-shakeup). But in its earnings statement, Apple acknowledged that iPhone revenue declined 15 percent from the prior year, as revenue from other products and services grew 19 percent. But Maestri added on a call with analysts Tuesday that the global active install base of iPhones is growing and "reached an all-time high at the end of December." He said it surpassed 900 million devices, up year-over-year in all geographic segments, even China, and grew almost 75 million in the last 12 months. Services alone generated an all-time high revenue of $10.9 billion, up 19 percent year-over-year. Apple has been positioning itself to grow its services offerings, like iCloud and App Store, as sales have faltered for the iPhone, its core product. Apple also offered guidance for the ongoing quarter. The company said it expects revenue between $55 billion and $59 billion. Heading into its last earnings report, Apple was on top of the world. Despite stagnating sales of its core product, the iPhone, the tech behemoth had breached $1 trillion in market capitalization ー the first publicly traded U.S. company to do so ー and it had just unveiled several new iPhone models that promised to propel its average selling price further skyward. But what followed was a turbulent quarter for the markets and for Apple. Cook’s preemptive outlook downgrade in a note to investors on Jan. 2 sent shares tumbling. Cook blamed weakness in the Chinese market for most of the revenue shortfall to its guidance, and for all of the year-over-year worldwide revenue decline. Per Cook's warning, Apple's earnings report showed a notable slowdown in China. Sales in the last three months of 2018 declined about 27 percent year-over-year from $17.96 billion to $13.17 billion in Apple's Greater China segment, but sales in the Japanese and European markets also dipped. Apple shares were up about 3.6 percent in after hours trading, but down about 2 percent year-to-date. Since it hit $1 trillion, the tech behemoth’s market cap has slid about 27 percent to $734 billion.

Share:
More In Business
Pinterest Acquires A.I.-Powered Platform THE YES as Part of Online Shopping Push
Pinterest is making a big move as it pushes further into online shopping. The image-focused social media site is acquiring A.I.-powered shopping platform THE YES as it focuses on enhancing the user shopping experience. THE YES's technology gives users a personalized feed of products based on their preferences, and Pinterest is banking on the tech to give it an advantage among other social media apps with built-in shopping features. Julie Bornstein, founder and CEO of THE YES, joins Closing Bell to discuss the company's unique technology, why it agreed to sell to Pinterest, her vision as she takes over shopping initiatives, and more.
U.S. Stocks Closed at Session Highs Tuesday
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
Gymnasts Seek $1 Billion From FBI Over Larry Nassar Case
The victims from the USA gymnastics sexual abuse scandal continue to seek justice. Survivors of Larry Nassar are seeking more than one-billion dollars from the FBI for failing to stop the convicted sports doctor when the agency first received allegations. According to a report released by the Justice Department's Inspector General, FBI agents knew in July of 2015 that Nassar was accused of abusing gymnasts; however, Nassar wasn't arrested until December of 2016. The group that filed the claim includes Olympic medalist Simone Biles and around 90 other women. Louise Radnofsky, sports reporter at The Wall Street Journal, joins Cheddar News' Closing Bell to discuss.
Saudi-Backed LIV Golf Tour Begins With Dustin Johnson & Phil Mickelson, Without Tiger Woods
A controversial professional golf tour backed by Saudi Arabia tees off on Thursday. Today, two-time Major winner Dustin Johnson announced he's resigned from the PGA Tour ahead of headlining the Saudi-backed tour, called the LIV Golf Invitation Series. The announcement comes as the PGA tour has threatened disciplinary action for its golfers who take part in the Saudi golf league event, which will also feature notable golf stars like Phil Mickelson and Sergio Garcia; however, LIV Golf's CEO, Greg Norman, told The Washington Post that Tiger Woods rejected a contract worth 'high nine digits' to play in the tour. Chris Bumbaca, reporter for USA Today Sports, joins Cheddar News' Closing Bell to discuss.
Load More