What a difference a week makes: Apple's $88.3 billion quarter is even more impressive brok...
Not only was Apple's holiday quarter of 2017 a hard compare to previous year's numbers because of three flagship models, but the year-ago quarter had an extra sales week. AppleInsider breaks down the numbers for a closer look at Apple's earnings, on a "average per week" basis.
Apple's first fiscal quarter of 2018 was a blockbuster. Apple broke its revenue record it posted a year ago, and posted revenue of $88.3 billion dollars. The results were built on the foundation of 77.3 million iPhones sold in the quarter -- led by the iPhone X.
The only thing that it may have disappointed on was that 77.3 million iPhone sales volume, but it more than made up for that in an average selling price of $796.42 per unit, as well as a dramatic increase in services and the catch-all "other" category."
But, a lot of time was given in the question and answer session following the earnings report both last year, and this year, to the fact that not all quarters are the same, from a sales week perspective. There are two ways to look at this mathematical oddity -- the first is comparing quarter to quarter on an average sales dollar per week basis. The graph below illustrates the tale, but in the 14-week quarter a year ago, Apple generated $5.60 billion in revenue per week, with it topping $6.79 billion a week in the most recent holiday quarter.
The other way to examine the data is projecting if the holiday quarter was a 14-week one, what would Apple have made given the same volume of sales and earnings.
As far as the future goes, Apple's predictions for the next quarter are (obviously) lower than the holiday quarter. It's the nature of the holiday season, and an iPhone release purchase cycle four full months prior at the start of the quarter.
But, even those numbers are ridiculously higher than last year's, by a full $9 billion. Apple is predicting to make between $60 billion and $62 billion in the now-current quarter, with the year-ago quarter having actually hit $52.9 billion.
If nothing else, coupling with what Apple is predicting for this quarter, combined with looking at the holiday's sales data on a quarterly or weekly basis just takes a different angle of approach to what Apple has said all along -- that there is no wavering in the strength of the iPhone X because of a hypothetical weak demand, as poorly predicted by Nikkei and other prognosticators.
Apple's first fiscal quarter of 2018 was a blockbuster. Apple broke its revenue record it posted a year ago, and posted revenue of $88.3 billion dollars. The results were built on the foundation of 77.3 million iPhones sold in the quarter -- led by the iPhone X.
The only thing that it may have disappointed on was that 77.3 million iPhone sales volume, but it more than made up for that in an average selling price of $796.42 per unit, as well as a dramatic increase in services and the catch-all "other" category."
But, a lot of time was given in the question and answer session following the earnings report both last year, and this year, to the fact that not all quarters are the same, from a sales week perspective. There are two ways to look at this mathematical oddity -- the first is comparing quarter to quarter on an average sales dollar per week basis. The graph below illustrates the tale, but in the 14-week quarter a year ago, Apple generated $5.60 billion in revenue per week, with it topping $6.79 billion a week in the most recent holiday quarter.
The other way to examine the data is projecting if the holiday quarter was a 14-week one, what would Apple have made given the same volume of sales and earnings.
Lies, damn lies, and statistics
In the U.S., companies report on a quarterly basis, so we periodically get a quarter that's one week longer than the previous one, with the resultant mathematical oddities and bad compares. That reporting period is monthly in some others -- it's all for consistency, and it all comes out "in the wash," so to speak. But, that one week can make for some difficult comparisons, from time to time.As far as the future goes, Apple's predictions for the next quarter are (obviously) lower than the holiday quarter. It's the nature of the holiday season, and an iPhone release purchase cycle four full months prior at the start of the quarter.
But, even those numbers are ridiculously higher than last year's, by a full $9 billion. Apple is predicting to make between $60 billion and $62 billion in the now-current quarter, with the year-ago quarter having actually hit $52.9 billion.
If nothing else, coupling with what Apple is predicting for this quarter, combined with looking at the holiday's sales data on a quarterly or weekly basis just takes a different angle of approach to what Apple has said all along -- that there is no wavering in the strength of the iPhone X because of a hypothetical weak demand, as poorly predicted by Nikkei and other prognosticators.
Comments
(Presumably it's because they "close the books" on sales at the end of every week rather than daily, but still.)
Some corporations fix this by dividing the year into 13, 4-week periods but they you can't evenly divide the year into quarters.
To me, since Apple does have so much seasonal variance in revenue, it would make more sense to do a 3 month quarter so the only variance between same-quarter comparability would be the one day during leap year in the Jan-March quarter every four years. Having an entire additional week packed into your busiest quarter really distorts things by a much higher percentage. Same-quarter comparability between fiscal years is more important to me than consecutive quarter comparability when taking into account the timing of Apple's varying revenue stream.
This will also make year-over-year comparability screwed up as last year had 53 weeks where this one will have 52.
now at 163$, last week around 170$!
Wall street is just crazy!!!
-- China remains a key market for Apple. Revenue from Greater China grew double-digits y/y for the second quarter in a row (11% y/y). However, investors should keep in mind that the year ago quarter had 14 weeks. On an average weekly revenue basis, revenues in Greater China grew 19% y/y. In urban China (and in the US), the top five smartphones last quarter were all iPhones.
Various reports today are stating that Apple sold less iPhones in the recent holiday quarter than they did a year ago... But as they say in math class, "Do the math."
iPhone sales hit 77.316 million units in Apple’s 91-day Q1 FY 2018 quarter. That compares with 78.29 million sales in the year-ago quarter.
You’d imagine those figures meant that sales shrank, but it’s not the case: Last year’s quarter extended over 98 days (14 weeks), while this year Apple saw a more traditional 91-day (13-week) quarter.
That means Apple sold around 849,600 iPhones every day in Q1 FY 2018, in contrast to 798,877 iPhones it sold each day across Q1 FY 2017.
In other words, Apple sold iPhones in Q1 FY 2018 at a 6.35% FASTER rate than they did in Q1 FY 2017!
Or, another way to put it, if this year's 91 day Q1 was equal to the 98 days of last year's Q1, the total count of iPhones sold would be 83,260,800 (Again, 6.35% MORE than last year!).
its nauseating how dishonest , deceptive and unaccountable the media has become .