Apple Q1 2019 earnings

Earlier this month, Cook warned that headwinds in China would drag results lower. China accounts for Apple’s second largest source of revenue by country, behind the U.S., and has been posting annual growth for the past several quarters.

Apple reported China revenues of $17.96 billion a year ago, and $11.41 billion in its fiscal fourth quarter. A year-over-year decline this quarter would be the first period without annual growth in the market since June 2017.

Cook’s warning earlier this month of weaker iPhone sales in China rubber-stamped a months-long conversation around shrinking smartphone sales and market saturation.

Investors will get only minimal insight on that front this quarter, since Apple won’t break out unit sales for the iPhone or its other major product lines. But Wall Street will undoubtedly be looking for even modest growth in products revenue.

Last quarter, Apple reported year-over-year growth of roughly 30 percent in both iPhone and Other Products revenue, which includes the Apple Watch, the HomePod smart speaker and accessories like the AirPods. Revenue for the Mac grew 3 percent year over year during the September quarter, and revenue for the iPad fell 15 percent year over year.

This is a developing story. Please check back for updates.

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