Premium-priced iPhone X, iPhone 8 propel Apple to $88.3B in revenue in its best quarter ev...

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in AAPL Investors edited February 1
Apple continued its streak of record breaking holiday quarters, coasting to new heights yet again with revenue of $88.3 billion and earnings per share of $3.89, based largely on the highest-ever average selling prices for iPhone lineup.




The biggest story in Apple's quarter was the average selling price of the iPhone, reaching about $796.42 and representing by far the highest level ever for the handset.

Those numbers were no doubt driven by the launch of the iPhone X, which carries a $999-and-up price tag.

Overall iPhone sales, however, were down 1.2 percent year over year, reaching 77.3 million units and coming short of investor expectations. However, revenue from the iPhone came in higher than Wall Street anticipated, due to the massive ASP.

Investors had forecast that Apple would hit 79 million iPhones sold in the quarter, which would have just beat out the old record. The previous record of 78.3 million was a year ago, in the holiday quarter of the 2016 calendar year -- Apple's first fiscal quarter of 2017.

For comparison, in the first fiscal quarter of 2017, Apple generated $78.4 billion in revenue. In the first fiscal quarter of 2016, spanning the calendar year 2015 holiday quarter following the iPhone 6s release, Apple generated $75.9 billion. And for the holiday 2014 quarter, Apple cranked out $74.6 billion on the strength of the large-screen iPhone 6 family launch.

"We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November," Apple Chief Executive Tim Cook said. "We've also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That's an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers."




The iPhone X was available for two months of the quarter, with the iPhone 8 family available for the entire quarter. Other products new to the quarter include the iMac Pro, which shipped for only a few days in the quarter.

As for the iPad, sales were up slightly -- 0.7 percent -- year over year to 13.2 million. iPad revenue grew a bit more, by 5.9 percent, reflecting the popularity of the iPad Pro.

Mac sales, however, fell 4.8 percent from a year prior, to 5.1 million. Revenue was down the same percentage.

Apple's revenue from software and services was $8.5 billion, while revenue from "other" products (including the Apple Watch) reached $5.5 billion. Revenue was up 13 percent year over year, while EPS was up 16 percent.

Last fall, Apple forecasted, Apple forecasted holiday revenue between $84 billion and $87 billion -- mostly on the strength of the iPhone X. Tim Cook notably predicted that the quarter would be the "best quarter ever," a prediction borne out by Thursday's actual results.

While a record setting holiday quarter was expected, a year over year decrease in iPhone units could cause concern among investors seeking growth. Another issue on Wall Street: guidance for Apple's March quarter, which came in below expectations.

For the next quarter, Apple has forecast revenue between $60 billion and $62 billion, with gross margins between 38 percent and 38.5 percent. The company expects operating expenses between $7.6 billion and $7.7 billion, other income of $300 million, and a tax rate of about 15 percent.

"Thanks to great operational and business performance, we achieved all-time record profitability during the quarter, with EPS up 16 percent," Apple Chief Financial Officer Luca Maestri, said. "Cash flow from operations was very strong at $28.3 billion, and we returned $14.5 billion to investors through our capital return program."
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Comments

  • Reply 1 of 51
    slurpyslurpy Posts: 5,062member
    Holy fucking shit...insane results.
    peterhartmavemufcmacxpressStrangeDaysjony0bshankcornchiplollivermagman1979watto_cobra
  • Reply 2 of 51
    As an Apple Shareholder going Long !!! Love It ! Love It ! Love It ! Love It ! Love It ! Love It !
    mavemufcbshankmacseekermagman1979watto_cobra
  • Reply 3 of 51
    Any Apple fan knew this was going to be the biggest quarter in their history, I’m glad all the rumours were false! Also good to see the iPad sales increase, and hopefully the same this year once the new Pros are released.
    peterhartlollivermagman1979watto_cobraflashfan207
  • Reply 4 of 51
    "Any Apple fan knew this was going to be the biggest quarter in their history, I’m glad all the rumours were false! Also good to see the iPad sales increase, and hopefully the same this year once the new Pros are released."

    The rumor from the past week that iPhone unit sales would be lower than projected was in fact true.

    cornchipmuthuk_vanalingamcropr
  • Reply 5 of 51
    Never had any doubt. Way to go apple and way to go Tim Cook & team!
    bshanklollivermagman1979watto_cobramavemufc
  • Reply 6 of 51
    Active installed base grown with 30 percent in two years. Very impressive. That's 300 million customers extra buying devices, apps, music, movies and more. Extra. Wow.
    lollivermagman1979baconstangwatto_cobra
  • Reply 7 of 51
    It's a glass half full. As a shareholder I would like to see apple come out of this stagnant cycle of iPhone, iPad and Mac.
    If you see from other side, iPhone, iPad and Macbook sales are almost constant in terms of units sold over the 4 years.
    Yes ASP has went up. higher asp and higher service/other revenue helping apple beat earlier year's results.
    Growth has to come back into core products (iPhone, iPad and Mac) as there is limit to how much ASP can user afford.
    muthuk_vanalingam
  • Reply 8 of 51
    Vergilius said:

    The rumor from the past week that iPhone unit sales would be lower than projected was in fact true.

    Like a typical ANALyst, Pulled that point right out of your *ss.  With a never, ever, before seen Average selling Price of about $796.42, it would Contradict that uninformed comment. ….So No, Not True
    magman1979watto_cobra
  • Reply 9 of 51
    fallenjtfallenjt Posts: 3,931member
    slurpy said:
    Holy fucking shit...insane results.
    and AAPL will drop because investors said Apple sold less iPhone comparing to last year...yup. They will then go on saying that next quarter will be worse.
    watto_cobra
  • Reply 10 of 51
    Vergilius said:
    "Any Apple fan knew this was going to be the biggest quarter in their history, I’m glad all the rumours were false! Also good to see the iPad sales increase, and hopefully the same this year once the new Pros are released."

    The rumor from the past week that iPhone unit sales would be lower than projected was in fact true.

    I don't argue with that except that it was not as significant as it was made out to be. In between ASP and marketshare, we all know which one is more important for Apple. The law of nature is that you can't have both at the same time.
    edited February 1 lolliverwatto_cobra
  • Reply 11 of 51
    fallenjtfallenjt Posts: 3,931member
    Vergilius said:
    "Any Apple fan knew this was going to be the biggest quarter in their history, I’m glad all the rumours were false! Also good to see the iPad sales increase, and hopefully the same this year once the new Pros are released."

    The rumor from the past week that iPhone unit sales would be lower than projected was in fact true.

    The rumor from the past week that iPhone X unit sales would be lower than projected. That's false.
    cornchiplollivermagman1979watto_cobra
  • Reply 12 of 51
    iPhone sales were down about 1% y/y, but 1Q2018 was also a week shorter than 1Q2017. 13 weeks this year vice 14 last year. So, they sold 1% less phones in about 7% less time. If 1Q this year had the same number of weeks as last year, iPhone sales would have been up 5-6%.
    ronnjony0cornchiplollivermagman1979watto_cobra
  • Reply 13 of 51
    shahhet2 said:
    It's a glass half full. As a shareholder I would like to see apple come out of this stagnant cycle of iPhone, iPad and Mac.
    $5.5B in "other products" (Watch, AirPods...) is something most companies would be insanely proud of. How is that for breaking your "stagnant cycle"? And the HomePod is not even included in this quarter.
    StrangeDaysronnlollivermagman1979baconstangwatto_cobraJinTechfastasleep
  • Reply 14 of 51
    Vergilius said:
    "Any Apple fan knew this was going to be the biggest quarter in their history, I’m glad all the rumours were false! Also good to see the iPad sales increase, and hopefully the same this year once the new Pros are released."

    The rumor from the past week that iPhone unit sales would be lower than projected was in fact true.

    Actually, false.
    magman1979watto_cobra
  • Reply 15 of 51
    Vergilius said:

    The rumor from the past week that iPhone unit sales would be lower than projected was in fact true.

    Like a typical ANALyst, Pulled that point right out of your *ss.  With a never, ever, before seen Average selling Price of about $796.42, it would Contradict that uninformed comment. ….So No, Not True
    You have terrible reading comprehension.  Says in the article iPhone sales were DOWN 1.2%.  This means they sold FEWER iPhones than the same quarter last year.  But yes the ASP was fantastic, and much better than expected.  Means lots of iPhone X and not a lot of iPhone 8
    edited February 1
  • Reply 16 of 51

    While a record setting holiday quarter was expected, a year over year decrease in iPhone units could cause concern among investors seeking growth. 
    Yeah, unless they realize that making a lot more money than they ever have before IS growth. 
    cornchiplolliverpalominemavemufc
  • Reply 17 of 51
    fallenjtfallenjt Posts: 3,931member
    Stock up to $169.40 now. Will see how WS Anal ists say tomorrow.
    watto_cobra
  • Reply 18 of 51
    In a mature market Apple's strategy of selling iPhone at higher margins seems to have paid off. Obviously Apple is in an envious position, however their business model depends on bringing cool/new stuff to market and I don't see a new category in the offing. Maybe they will sell a ton of HomePod's, but my initial take is that the product is late to market and lacks many of the key features necessary to effectively compete with Sonos, Google, and others. Still. A very strong quarter and Apple is to be congratulated!
    watto_cobra
  • Reply 19 of 51
    shahhet2 said:
    It's a glass half full. As a shareholder I would like to see apple come out of this stagnant cycle of iPhone, iPad and Mac.
    $5.5B in "other products" (Watch, AirPods...) is something most companies would be insanely proud of. How is that for breaking your "stagnant cycle"? And the HomePod is not even included in this quarter.
    That is the only reason AAPL is having biggest market cap among all.
    Do you think AAPL stock would by anywhere without those service/other product revenues and core product (In units) staying same over 4 years?
    It is not going to move the needle much for the stock price (Including HomePod) as far as there is no significant plan to improve the core numbers.
    What I meant that it is not going to go down but at the same time not going up much as others expect. (Compared to other tech stocks)
    edited February 1
  • Reply 20 of 51
    fallenjtfallenjt Posts: 3,931member
    And other:

    Google Q4 revenues of $32.3 billion beat expectations, but earnings disappoint


    cornchipmagman1979watto_cobra
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