Apple's 77.3 million iPhone, $88.3 billion quarter by the numbers

Posted:
in AAPL Investors
The addition of the iPhone X that commanded a steeper premium than ever before has made Apple's financial quarter an interesting one. The changes over time are best illustrated graphically, showing the magnitude of the quarter, as compared to quarters of years past.




Even though Wall Street seems disappointed by the number of iPhones sold, it is still competitive with the year-ago quarter, with a notably higher average selling price in comparison.




A great deal was made about a decline in units of iPhones sold in the quarter by analysts, and we expect that it will be a talking point in the weeks to come, for better or worse. While it is a lower number, it is a drop of just more than one percent from the year-ago-quarter. And, the year-ago quarter had one extra sales week than the most recent one did.




The iPhone continues to dominate Apple's sales volumes, with services like iTunes and the App Stores continuing to eclipse Mac sales -- to the dismay of the long-time faithful. The "other" category including the Apple Watch, the AirPods, and in the next quarter, the HomePod continues to grow, with the holiday quarter being the best one since the formation of the category in 2014.




The painfully obvious note for Apple's income is that it is continuing its high-Q1 trend, with revenues still considerably higher than for the previous three quarters. As one would expect, net profit follows a similar path of growth and decline, usually hovering at around 20 percent of Revenue's value.




When viewed as a percentage change, both revenue and net profit are still growing. Though they both similarly increased year-on-year by 12.7 percent and 12.2 percent respectively, the graph shows two slightly different trajectories.

While revenue's yearly growth has marginally increased compared to the previous quarter, net profit growth has actually reduced down from the 18.9 percent year-on-year change recorded for Q4 2017.
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Comments

  • Reply 1 of 32

    77.3m iPhones for 13 weeks extrapolates to ~83m iPhones if quarter was same 14week period as last yr AND a $100 ASP increase. Incredible. 


    lolliverradarthekatJFC_PAchasmaegeanwatto_cobra
  • Reply 2 of 32
    sflocalsflocal Posts: 4,198member
    Screw what the folks at the Wall Street Casino think.  These numbers are absolutely staggering.  Unbelievable how many phones they are selling.  Samsung would kill to have these kinds of numbers.
    lolliverStrangeDaysAvieshekaegeanwatto_cobra
  • Reply 3 of 32
    FolioFolio Posts: 369member
    Wall Street has lots to chew on. iPhone unit results of this Q combined with lackluster projections for March quarter calls into question the "super cycle" thesis set up by many analysts. Hope they adopt a more sophisticated modeling, rather than treating AAPL like Disney, as if iPhone X going through equivalent of a StarWars trilogy. 

    Quick return to double digit GROWTH is incredible for a company with such revenues. But yes, they'll have to mull over whether growth will continue, rather than swing into down cycle as a few years back. I believe the former, as per post on another thread.
    watto_cobra
  • Reply 4 of 32
    Folio said:
    Wall Street has lots to chew on. iPhone unit results of this Q combined with lackluster projections for March quarter calls into question the "super cycle" thesis set up by many analysts. Hope they adopt a more sophisticated modeling, rather than treating AAPL like Disney, as if iPhone X going through equivalent of a StarWars trilogy. 

    Quick return to double digit GROWTH is incredible for a company with such revenues. But yes, they'll have to mull over whether growth will continue, rather than swing into down cycle as a few years back. I believe the former, as per post on another thread.
    Double digit growth in March is “lackluster”? What are you smoking? The greater than 20% growth Wall Street was projecting was insane.
    lolliverLukeCageronnbrucemcAvieshek
  • Reply 5 of 32
    MacProMacPro Posts: 17,514member
    sflocal said:
    Screw what the folks at the Wall Street Casino think.  These numbers are absolutely staggering.  Unbelievable how many phones they are selling.  Samsung would kill to have these kinds of numbers.
    Not to mention profits!
    watto_cobra
  • Reply 6 of 32
    JWSCJWSC Posts: 142member
     I remember John Scully (right after he ousted Steve Jobs) saying he was determined to grow Apple into a $10 billion a year company by revenue.  Of course, we all know how that turned out.

    Apple is now a $20 billion company by profit in it a single quarter.  Jaw dropping.
    christopher126lolliverLukeCageAvieshekwatto_cobra
  • Reply 7 of 32
    JWSC said:
     I remember John Scully (right after he ousted Steve Jobs) saying he was determined to grow Apple into a $10 billion a year company by revenue.  Of course, we all know how that turned out.

    Apple is now a $20 billion company by profit in it a single quarter.  Jaw dropping.
    Remember when Steve said he wanted to sell 10mil iPhones a year to call it a success now iPad sells that in a bad quarter and is considered a failure by many talking heads.
    lolliverLukeCageStrangeDaysSpamSandwichAvieshekaegeanwatto_cobra
  • Reply 8 of 32
    Thankfully, no one said Apple is doomed.
    The market for premium cell phones may be maturing, but Apple continues to be ahead of the curve in a number of areas while also improving current technology.
    Being best is better than being first.
    edited February 1 mattinozmike1watto_cobra
  • Reply 9 of 32
    gxcadgxcad Posts: 118member
    I find it funny that Samsung once again tried to copy Apple - this time by anticipating their high price for the iPhone X using rumors, then pricing their Galaxy Note 8 at $930MSRP.

    I doubt they actually sold many Note 8s at full MSRP...they are going for FAR less on eBay...meanwhile iPhone X is still holding value...Samsung doesn't have the brand strength or loyalty that Apple does...

    I'm a bit bitter to Samsung. Although they make good products, they are shameless when it comes to copying. While I am OK with that, they then DENY COPYING. Remember when Samsung released the gold color Galaxy S4 suspiciously soon after Apple was selling millions of gold iPhone 5s? Samsung had the nerve go out of their way to deny copying...with examples. WHAT A COINCIDENCE! /s
    Avieshekwatto_cobra
  • Reply 10 of 32
    gxcad said:
    I find it funny that Samsung once again tried to copy Apple - this time by anticipating their high price for the iPhone X using rumors, then pricing their Galaxy Note 8 at $930MSRP.

    I doubt they actually sold many Note 8s at full MSRP...they are going for FAR less on eBay...meanwhile iPhone X is still holding value...Samsung doesn't have the brand strength or loyalty that Apple does...

    I'm a bit bitter to Samsung. Although they make good products, they are shameless when it comes to copying. While I am OK with that, they then DENY COPYING. Remember when Samsung released the gold color Galaxy S4 suspiciously soon after Apple was selling millions of gold iPhone 5s? Samsung had the nerve go out of their way to deny copying...with examples. WHAT A COINCIDENCE! /s
    I’m not OK with copying. Samsung is a company headed by thieves and driven by thievery.
    JWSCradarthekataegeanwatto_cobra
  • Reply 11 of 32
    roakeroake Posts: 583member
    All I know is I bought another 300 shares 3 days ago.  Doubt I will regret it.
    edited February 1 jasenj1watto_cobra
  • Reply 12 of 32
    analogjackanalogjack Posts: 1,043member
    Apple urgently needs to fund research into finding other Earth like planets to open up new markets, perhaps the spaceship campus is literally a spaceship, this would show Jobs' remarkable foresight. 
    watto_cobra
  • Reply 13 of 32
    brucemcbrucemc Posts: 1,432member
    clarker99 said:

    77.3m iPhones for 13 weeks extrapolates to ~83m iPhones if quarter was same 14week period as last yr AND a $100 ASP increase. Incredible.

    Well, I don't think the math is quite that linear (e.g. Christmas gifts are not determined by the length of the quarter).  But no doubt it had an impact of likely a few million units.

    I will admit I was a bit more bullish than the results showed.  I thought with the 3 models, and excitement around the new form factor, that Apple would sell a few more iPhones than last year's quarter (maybe 79-80M).  I wasn't thinking a super cycle like the 6, but a general increase over a few years.  ASP was up quite high as thought, which showed the that the X performed quite well (and of course Tim confirmed that).

    People seem to be holding on to their phones longer (many iPhone 6 are working fine - especially with a battery upgrade:).  Oh well, better to have a satisfied & growing installed base than not.  At 1.3B active devices, that roughly translates to (my finger waving) 100M Macs, 350M iPads, 800M iPhones and 50M other (AW, ATV).  Nothing wrong with ~800M iPhones, with the vast majority upgrading (at some point).  

    Growth needs to come from services and wearables, as the other lines will grow at most (over a few years view) of single digits.


    atomic101watto_cobra
  • Reply 14 of 32
    tzeshantzeshan Posts: 1,720member
    Don't forget iPhone X was in short supply in the beginning. Otherwise the unit number probably will be another record. 
    crossladwatto_cobra
  • Reply 15 of 32
    JFC_PAJFC_PA Posts: 192member
    A LOT of coverage leave out that one less week fact. Kudos. 
    watto_cobra
  • Reply 16 of 32
    LatkoLatko Posts: 115member
    gxcad said:
    I find it funny that Samsung once again tried to copy Apple - this time by anticipating their high price for the iPhone X using rumors, then pricing their Galaxy Note 8 at $930MSRP.

    I doubt they actually sold many Note 8s at full MSRP...they are going for FAR less on eBay...meanwhile iPhone X is still holding value...Samsung doesn't have the brand strength or loyalty that Apple does...

    I'm a bit bitter to Samsung. Although they make good products, they are shameless when it comes to copying. While I am OK with that, they then DENY COPYING. Remember when Samsung released the gold color Galaxy S4 suspiciously soon after Apple was selling millions of gold iPhone 5s? Samsung had the nerve go out of their way to deny copying...with examples. WHAT A COINCIDENCE! /s
    I’m not OK with copying. Samsung is a company headed by thieves and driven by thievery.
    Just shameless how they copied wireless charging, OLED, larger screens, small bezels IN ADVANCE
    muthuk_vanalingam
  • Reply 17 of 32
    I see clowns on Twitter saying Apple is dismantling Jobs legacy because Cook has decided (or the tax law decided for him) to no longer hoard obscene amounts of cash. Do these clowns really think Cook isn’t going to ensure Apple has the capital it needs to invest in R&D, M&A etc.? Come on.
  • Reply 18 of 32
    radarthekatradarthekat Posts: 2,528moderator
    Apple urgently needs to fund research into finding other Earth like planets to open up new markets, perhaps the spaceship campus is literally a spaceship, this would show Jobs' remarkable foresight. 
    I’ve a feeling the plan in Cupertino is already in place to convert all those Android owners here on Earth to iPhone owners.   Android is a great smartphone training ground, as Cook said a few years ago. 
    christopher126SpamSandwichwatto_cobra
  • Reply 19 of 32
    JFC_PAJFC_PA Posts: 192member
    clarker99 said:

    77.3m iPhones for 13 weeks extrapolates to ~83m iPhones if quarter was same 14week period as last yr AND a $100 ASP increase. Incredible. 


    Which is missing from just about EVERY “iPhone miss” article out there, other than this one though that lede is buried. 

    Infuriating. 
    edited February 2 radarthekatwatto_cobra
  • Reply 20 of 32
    radarthekatradarthekat Posts: 2,528moderator
    roake said:
    All I know is I bought another 300 shares 3 days ago.  Doubt I will regret it.
    Me too.  First, some idiot exercised the short side of 49 of 150 Jan 2019 $135/140 call spreads I had in play, while there was still $7 extrinsic in the price.  That took away 4900 long-term and very profitable shares, so I immediately bought back 5000 shares (that netted me an additional 100 shares, and then I sold 49 of the $135 call contracts to close out the other half of those spreads.  I now have a wash sale on those 4900 shares plus the profit from the call spread (about $12k) plus the $35k that was dropped in my lap by the fool who exercised rather than sold to close his long $140 calls (my short $140s).  And then later I bought 300 additional Apple shares to round out my total holdings at 7500 shares.  That was all transpired at about $166.  
    Folio
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