Apple's 77.3 million iPhone, $88.3 billion quarter by the numbers
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.
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.
Comments
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.
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.
Apple is now a $20 billion company by profit in it a single quarter. Jaw dropping.
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.
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 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.
Infuriating.