The constant currency fluctuations worldwide played a major role in the results from the Apple Q1 earnings report, hurting revenue by as much as 8%.
During Apple’s quarterly earnings call today, the company revealed that they raked in $75.9 billion in revenue during its first fiscal quarter. Of the $75.9 billion, $29.3 billion came from the U.S. alone, which even though sounds positive, is still 4% down from the same time last year. China brought in $18.4 billion, which is up 14% year-over-year, making them Apple’s second most important market. According to Apple CEO Tim Cook, numbers could’ve been higher if it weren’t for fluctuating currency rates.
The Cupertino-based company prepared ‘supplemental material’ for the first time this year with the earnings report, detailing large currency fluctuations they are facing abroad. Compared to the fourth quarter of 2014, Apple apparently only made $85 for every $100 it would have made due to currency fluctuations. What this translates to in earnings is Apple would have earned $5 billion more in first quarter revenue or had an 8% increase year-over-year.
Cook’s first topic during the conference call today was currency fluctuation issues the company is facing. Despite the fluctuations, the company still plans on pushing forward in the region and we’re not surprised as China (including Hong Kong) is becoming a very important market for them. As for regional revenues after taking constant currency variation into consideration, the U.S. is still down 1% bringing $30.2 billion, China is up 17% bringing in $19 billion, Europe is up 4% bringing $17.9 billion (but due to constant currency calculations the number is up to $20.2 billion, which is an 18% increase), and Japan is down 12% bringing in $4.8 billion (but in constant currency terms Japan is only down 4% and brought in $5.3 billion).
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