As iPhone sales have slowed, Apple is looking for new growth areas, including from its new foray into the entertainment biz.
Wall Street analysts' consensus estimates had projected Apple to report revenue of $57.37 billion and EPS of $2.36. Apple's stock rose over 5% in after-hours trading.
At the same event, it announced Apple News+, a $10-per-month service with access to over 300 publications; Apple Arcade, a new game-subscription service to hit in the fall; and Apple TV channels, a storefront for subscriptions to third-party streaming services including HBO, Showtime, Starz and CBS All Access set to debut in May.
For the quarter ended March 30, which is Apple's fiscal year 2019 second quarter, the company reported revenue of $58.0 billion, down 5% from the year-ago quarter, and earnings per diluted share of $2.46, down 10%.
Apple expects revenue to continue to shrink: For the June 2019 quarter, it expects revenue between $52.5 billion and $54.5 billion — down 11%-14% compared with $61.1 billion in the year-earlier period.
Apple posted better earnings and revenue than Wall Street expected for the March 2019 quarter — even as sales of its flagship iPhones were $6.5 billion lighter in the period, down 17%.
While iPhone revenue fell, to $31.05 billion, Apple's Services segment — which includes the App Store, Apple Music, iCloud, Apple Care and Apple Pay — generated quarterly record revenue of $11.5 billion, up 16%. According to CEO Tim Cook, Apple had 390 million paid subscriptions at the end of March, up 30 million in the last quarter.
Cook said Apple will share more information on the company's initiatives at its 30th annual Worldwide Developers Conference, set for June 3-7 in San Jose, Calif.
“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,” Cook said in announcing the earnings.
As in the 2018 holiday quarter, Apple's sales in Greater China declined, dropping 21% year-over-year, to $10.22 billion. The tech giant had warned of weaker sales in China earlier this year.
Other bright spots: Revenue in the company's Wearables, Home and Accessories segment jumped 30%, to $5.13 billion, and iPad sales hit a six-year high of $4.87 billion (up 22% year over year).
In announcing earnings, Apple CFO Luca Maestri said the company's board has authorized an additional $75 billion for share repurchases. To that end, the company declared a cash dividend of 77 cents per share, an increase of 5%, payable to shareholders on May 16, 2019.” />
In March, the company announced Apple TV+, a subscription-streaming service with a slate of content from Hollywood partners, including Oprah, Steven Spielberg, Jennifer Aniston, Reese Witherspoon, Steve Carell, and J.J. Abrams, who talked about their projects for the forthcoming streaming service. But Apple didn't announce pricing, saying only that Apple TV+ is set to debut in the fall of 2019 in over 100 countries.

*Elvin Eng has been named UMG’s CFO for the South East Asia Region, reporting to Muir and based in Singapore. Previously VP of finance for UMG, Asia Region, Eng will oversee the finance operations and strategy for South East Asian markets including Korea.
*Tracy Mu has been appointed Finance Director of Universal Music China. Mu will report to Wang and Garand Wu, Managing Director, Universal Music China and joins UMG from international technology company Dolby Industries, where she spent 11 years, most recently as Finance Manager, APAC.
*Yvonne Yuen has been appointed SVP of Marketing for Greater China. She previously held the position of SVP, International Marketing for UMG in South East Asia and will continue to be based in Hong Kong and report to Chang.
*Aaron Wang has been appointed as Chief Financial Officer for Greater China and will oversee all financial operations within Greater China. He will be based in Beijing and report to Sunny Chang, Chairman & CEO of UMG Greater China and Boyd Muir, EVP, CFO and President of Operations for Universal Music Group. He joins from Sony Pictures Entertainment, where he was CFO of Greater China, and previously held positions at Yake Trading Co., Sequel AG (A Timex Company) and American Express.
The appointments are: Universal Music Group today announced a series of executive management appointments within Greater China and throughout Asia that, according to the announcement, signal a significant expansion of UMG’s finance, marketing and public policy infrastructure in Asia to maximize creative and commercial opportunities across these markets.
Announcing the changes, Adam Granite, Executive Vice President, Market Development, Universal Music Group said, “In order to maximize the opportunities for growth throughout these dynamic and fast evolving markets, we have expanded and bolstered our senior management teams within Greater China and throughout Asia to ensure that UMG remains at the forefront of industry change and innovation, breaking new talent and embracing new platforms and audiences, as the adoption of streaming through legal services continues to drive the growing music economy forward within the region.”
*Ang Kwee Tiang (aka KT Ang) has been named to the newly created position of Senior Vice President, Asia Public Policy, effective immediately. Ang joins UMG from IFPI, the global trade body for recorded music, where he has served as Regional Director, Asia Pacific since 2013.
With more than 25 years of music industry experience throughout Asia, Ang, who is an attorney by training, also previously worked as the regional director, Asia Pacific for CISAC.
Reporting to UMG’s Executive Vice President, Public Affairs, Eric Berman, Ang will be based in Hong Kong and will work across all markets throughout the region, including Hong Kong, Taiwan, China, Indonesia, Malaysia, Philippines, Singapore, Thailand, South Korea, India, Japan and Vietnam.
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