Notes of interest from Apple's Q4 2017 conference call

Posted:
in AAPL Investors edited November 2017
Exceeding market expectations with another strong quarter, Apple saw growth in its three main businesses of iPhone, iPad and Mac, on its way to $46.7 billion in revenue. Following the reveal, the company held a conference call with media and analysts, and notes of interest follow.




Participating in Thursday's call were Apple Chief Executive Tim Cook and Chief Financial Officer Luca Maestri.

Highlights

  • The Mac just completed its best year ever, with the highest annual revenue in Apple's history.
  • iPhone 8 and iPhone 8 Plus have been Apple's most popular models since they launched.
  • Apple Watch sales grew 50 percent and it remains the best selling smartwatch in the world.
  • Apple expects this holiday season to be its biggest quarter ever.
  • Apple ended the quarter with $268 billion in cash and marketable securities, up $7.4 billion.

Apple's iPhone business

iPhone 8 and 8 Plus instantly became two most popular iPhone models at launch, and have been every week since then.

Cook said that the iPhone 8 Plus got off to the strongest start of any Plus model to date, called it a "surprise" to them.

iPhone X launch is underway. Orders are "very strong," Cook said.

"We believe AR is going to change the way we use technology forever," Cook said.

He said that AR amplifies the human experience. "It should be a help for humanity, not an isolation kind of thing for humanity."

Also cited the power of CoreML and machine learning in iOS 11.

Cook said the ramp up for iPhone X production is "going well," adding that "we're really happy that we're able to increase week by week by what we're outputting, and we're going to get as many of them as possible to customers as soon as possible."

Apple's Mac business

All time record quarter for Mac sales in mainland China.

Best year ever for the Mac. Highest annual Mac revenue in Apple's history.

Best September quarter ever for the Mac.

Growth of 25 percent, driven by notebook refreshes in June and a strong back-to-school season.

Education market purchases grew double digits year over year.

Apple's iPad business

Second consecutive quarter of double-digit unit growth for iPad.

10.3 million units sold, up 11 percent year over year. Strong demand for both iPad and iPad Pro.

Units and revenue growth for iPad in all geographic markets, with particular strength in emerging markets.

China grew 25 percent and India grew 39 percent.

NPD says iPad had 54 percent share of U.S. market in September quarter, with 7 out of the top 10 models.

Apple Watch business

Unit growth of over 50 percent for third consecutive quarter.

Best selling smartwatch in the world.

Upcoming Apple heart study will use data from watch to recognize unusual heart rhythms and notify users when they are detected.

Wearables business was up 75 percent in the quarter. In fiscal 2017, it already generated the annual revenue of a Fortune 400 company.

Apple's retail operations

Cook touted the opening of Apple Michigan Avenue on Chicago's riverfront. Said it shows the future vision of Apple retail.

418 million visitors at Apple's retail stores.

Back to school promotions were very successful, with sales of Mac and iPad Pro up strong double digits compared to last year.

Stores conducted over 200,000 Today at Apple sessions during the quarter.

Apple's Services businesses

Services business grew 40 percent.

Momentum in India, where sales doubled.

Revenue reached an all-time quarterly record of $8.5 billion.

Apple on its way to doubling 2016 services business by 2020.

Active Apple Pay users have doubled over the last year.

Apple's next (Q1) fiscal quarter

Apple believes its December quarter, which includes the launch of the iPhone X, HomePod and iMac Pro, will be the company's biggest quarter ever.

Apple is guiding revenue between $84 billion and $87 billion, and gross margin between 38 percent and 38.5 percent.
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Comments

  • Reply 1 of 17
    fallenjtfallenjt Posts: 3,920member
    Expect AAPL to hit $180 by Thanksgiving. I was predicting it'd be by Christmas, but it appears to be earlier than that. By the way, Sog35 has been arrested...lol.
    lolliverradarthekatwatto_cobrajony0
  • Reply 2 of 17
    Any discussion/hints of new Macs? iMac Pro, Mac Pro, Mac Mini, etc...
    watto_cobra
  • Reply 3 of 17
    lkrupplkrupp Posts: 6,447member
    razorpit said:
    Any discussion/hints of new Macs? iMac Pro, Mac Pro, Mac Mini, etc...
    No. Apple never talks about unannounced products during financial results interviews. You should know that.
    paisleydiscololliverjony0
  • Reply 4 of 17
    When was the actual call? They usually hold these after business hours.
    watto_cobra
  • Reply 5 of 17
    jungmarkjungmark Posts: 6,558member
    So much for anemic 8 sales at launch. 
    lollivercalibshankwatto_cobrajony0
  • Reply 6 of 17
    adonissmuadonissmu Posts: 1,772member
    I was told that the 8 was a flop. Poor ATRL.
    watto_cobra
  • Reply 7 of 17
    Wow, I thought Apple had a strong product lineup heading into Xmas, last year! But this year is even stronger. Obviously, with the iPhone X, and my next purchase, the new Apple Watch. 

    Currently own an 2017 (rose gold) MacBook, Series 0 AppleWatch/Apple white charger, iPhone Se (rose gold), AirPods, AppleTV (sans 4K) and an iPad mini 2.

    In 2018, planning on upgrading to the AppleWatch LTE, iPhone X, AirPower, and may sell MacBook and go all in on the iPad Pro! :)


    Best.
    watto_cobra
  • Reply 8 of 17
    I'm glad your so fanatical about telling the world about what apple products you have, please tell more more people so my AAPL goes up!! $200 by Jan???
    Currently own an 2017 (rose gold) MacBook, Series 0 AppleWatch/Apple white charger, iPhone Se (rose gold), AirPods, AppleTV (sans 4K) and an iPad mini 2.

    caliwatto_cobra
  • Reply 9 of 17
    SoliSoli Posts: 8,380member
    Amazing results all around.
    bshankwatto_cobra
  • Reply 10 of 17
    radarthekatradarthekat Posts: 2,669moderator
    There’s an error in the first sentence of the article.  It wasn’t $46.7 billion, it was...

    Cupertino, California —November 2, 2017 — Apple today announced financial results for its fiscal 2017 fourth quarter ended September 30, 2017. The Company posted quarterly revenue of $52.6 billion, an increase of 12 percent from the year-ago quarter, 
    edited November 2017 watto_cobraSpamSandwich
  • Reply 11 of 17
    Good news.  Macs are selling well, despite near neglect on much of the product line.  Tim!  Imagine how Mac Pros and Mac Minis would sell if you actually refreshed them like you've been promising!  PLEASE!
    SpamSandwich
  • Reply 12 of 17
    SoliSoli Posts: 8,380member
    Good news.  Macs are selling well, despite near neglect on much of the product line.  Tim!  Imagine how Mac Pros and Mac Minis would sell if you actually refreshed them like you've been promising!  PLEASE!
    From what I can see much of the product line was updated within a reasonable amount of time despite Intel's increased slowdown and additional delays. While having new Mac minis and Mac Pros would be great, I'm guessing those units sales are likely the smallest fort the Mac product category.
    watto_cobra
  • Reply 13 of 17
    • Apple ended the quarter with $268 billion in cash and marketable securities, up $7.4 billion.
    Apple will hit 300 billion next year!  Time for a repatriation.  Exciting times ahead.  They stars are aligning....
    watto_cobraSpamSandwich
  • Reply 14 of 17
    I don’t see it here but did they reveal how much money went to share buybacks this quarter? 
    watto_cobra
  • Reply 15 of 17
    5150iii said:
    I don’t see it here but did they reveal how much money went to share buybacks this quarter? 
    $7.5 billion - $4.5 billion in open market transactions and $3.0 billion through accelerated share repurchase arrangements, the same as last quarter.

    Another $0.2 billion went to net share settlement.

    watto_cobra
  • Reply 16 of 17
    steveausteveau Posts: 190member
    ... may sell MacBook and go all in on the iPad Pro! :)


    Best.
    I'm thinking the same, a new iPadPro and Apple Pencil. Now that the iPadPro has handwriting recognition and "proper" filing. (How many years have I been wanting those features.) it's time to get one and see if I can ditch my MacBook Pro, notebook and camera, bookshelves and filing cabinets. (Well, perhaps I'll keep some of my books.)
  • Reply 17 of 17
    steveau said:
    ... may sell MacBook and go all in on the iPad Pro! :)


    Best.
    I'm thinking the same, a new iPadPro and Apple Pencil. Now that the iPadPro has handwriting recognition and "proper" filing. (How many years have I been wanting those features.) it's time to get one and see if I can ditch my MacBook Pro, notebook and camera, bookshelves and filing cabinets. (Well, perhaps I'll keep some of my books.)
    Perhaps an “Apple Pen” this time. ;)
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