Notes of interest from Apple's Q1 2017 conference call
Apple returned to growth and exceeded Wall Street expectations on Tuesday, when it reported record revenue, profits and iPhone sales for the first quarter of fiscal 2017. Following the news, the company held a conference call with media and analysts, and notes of interest follow.
Participating in Tuesday's call were Apple Chief Executive Tim Cook and Chief Financial Officer Luca Maestri.
Demand for it exceeded supply throughout the quarter.
The App Store saw $3 billion in purchases in December alone --?its best month ever.
Over 2.2 million apps are available on the App Store.
Apple's developer community has earned over $60 billion, including over $20 billion in 2016 alone.
Music business grew for third quarter in a row, and AppleCare and storage services set all-time records.
Apple Pay users have tripled over the last year, and hundreds of millions of transactions occurred in the December quarter alone.
Transaction volume was up over 500% year over year as Apple expanded to four new countries. It's now available in 13 markets.
Apple plans to double the size of its Services business in the next four years.
Cook also included AirPods as part of Apple's lineup of wearable products, noting that the company is working to meet up with incredible demand for the wireless headphones.
"This level of home automation was unimaginable just a few years ago, and it's here today with iOS and HomeKit," Cook said.
Of note, Apple mentioned customer satisfaction with the iPad mini, a product that has not been updated in over a year.
Participating in Tuesday's call were Apple Chief Executive Tim Cook and Chief Financial Officer Luca Maestri.
Highlights
- Apple's iPhone, Services, Mac and Watch businesses all set new all-time revenue records
- In a rare personal note, Cook detailed the ways he uses HomeKit in his own home to control lights, locks, his fireplace, and even make coffee
- The iPhone 7 Plus was a particularly strong performer, taking a greater share than previous "Plus" handsets
- Apple plans to double the size of its booming Services business over the next four years
- On acquisitions, Cook said: "There's not a size that we would not do, based on just the size of it."
Apple's iPhone business
Apple saw "especially higher demand" for the iPhone 7 Plus.Demand for it exceeded supply throughout the quarter.
Apple's Services business
Apple's best quarter ever, with almost $7.2 billion in revenue.The App Store saw $3 billion in purchases in December alone --?its best month ever.
Over 2.2 million apps are available on the App Store.
Apple's developer community has earned over $60 billion, including over $20 billion in 2016 alone.
Music business grew for third quarter in a row, and AppleCare and storage services set all-time records.
Apple Pay users have tripled over the last year, and hundreds of millions of transactions occurred in the December quarter alone.
Transaction volume was up over 500% year over year as Apple expanded to four new countries. It's now available in 13 markets.
Apple plans to double the size of its Services business in the next four years.
Apple's Mac business
The majority of Mac buyers last quarter were new to the platform, coming from Windows PC.Apple Watch and AirPods
The Apple Watch had a "strong full first year," and posted its best revenue ever last quarter.Cook also included AirPods as part of Apple's lineup of wearable products, noting that the company is working to meet up with incredible demand for the wireless headphones.
Apple's HomeKit business
Cook said he uses HomeKit in his own home, saying "Good morning" to turn on lights and make coffee. He's also automated his fireplace, lights, locks and more."This level of home automation was unimaginable just a few years ago, and it's here today with iOS and HomeKit," Cook said.
Apple's iPad business
iPad sales once again fell, to 13.1 million, though Apple continues to tout customer satisfaction rates and purchase intents.Of note, Apple mentioned customer satisfaction with the iPad mini, a product that has not been updated in over a year.
Comments
Such as? I mean there's very little Apple can introduce to be honest
I blelieve that computers should retain some upgradability and not only Apple computers. You can just see this trend more prominently with Apple's range of computers.
For me it is infuriating how corporations dumb down consumers to reduce life cycle time of their products (and consumers letting that happen and cheer for it)!
Reduce prices. Include AppleCare.
There were plenty of options to tempt people who were doubting. Should we read that Apple lost a huge amount of potential sales if the majority were to first time buyers?
Can they capture those users with an iMac refresh? It will depend on many factors and price will clearly be one of them.
Tim Cook sells another $3.6M batch of Apple stock
I wish I had that much AAPL stock to sell so I could afford $100 light bulbs and $500 coffee makers.Also, pretty sure I heard Tim say he uses HomeKit to open his garage. As far as I know there are no garage door openers for HomeKit currently on the market. It does seem that as far as services go, the dogfeeding is being done under ideal conditions, and thus some of the practical frustrations for the regular users go unnoticed (I can't be the only one waiting for a HomeKit garage opener).
NB: I'm in no way a Tim hater; IMO he's doing a great, if not excellent job.