Apple Reports Q2 2018 Results: $13.8B Profit on $61.1B Revenue, 52.2M iPhones

[MacRumors]

Apple today announced financial results for the second fiscal quarter of 2018, which corresponds to the first calendar quarter of the year.

For the quarter, Apple posted revenue of $61.1 billion and net quarterly profit of $13.8 billion, or $2.73 per diluted share, compared to revenue of $52.9 billion and net quarterly profit of $11.0 billion, or $2.10 per diluted share, in the year-ago quarter. The revenue, profit, and earnings per share numbers were records for any second fiscal quarter in the company's history.

Gross margin for the quarter was 38.3 percent, compared to 38.9 percent in the year-ago quarter, with international sales accounting for 65 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.73 per share, up from $0.63. The dividend is payable on May 17 to shareholders of record as of May 14.

In addition to the increase in the dividend payment, Apple says it will start a new share repurchase authorization of $100 billion and the company says it expects to wrap up its previous $210 billion repurchase authorization by the end of the current quarter.

For the quarter, Apple sold 52.2 million iPhones, compared to 50.8 million in the year-ago quarter. iPad sales were up slightly to 9.1 million, up from 8.9 million a year ago, while Mac sales slipped to 4.1 million from 4.2 million.

"We're thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables," said Tim Cook, Apple's CEO. "Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan."

Apple's guidance for the third quarter of fiscal 2018 includes expected revenue of $51.5-53.5 billion and gross margin between 38 and 38.5 percent.

Apple will provide live streaming of its fiscal Q2 2018 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Apple's conference call has concluded. A rough transcript is ahead...

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Article Link: Apple Reports Q2 2018 Results: $13.8B Profit on $61.1B Revenue, 52.2M iPhones

 

[predation]

How much of the iPhones sales was the x? Lol

 

[cmaier]

How much of the iPhones sales was the x? Lol

It was the best selling iPhone

 

[PotatoLeekSoup]

Glad I bought more shares yesterday. w00t!

 

[Sasparilla]

All those predictions of doom for Apple this quarter were wrong again....

 

[weup togo]

Never forget that EPS will continue to be artificially inflated by the share repurchase program.

 

[JimmyBanks6]

Remember when the X was announced at $999 and all the defenders said that the margins are worst.

El oh freaking el.

Sell less and make more money.

Btw I’m an owner of the X but let’s be honest, bean counter CEO raised the price to make more profits, not because the margins were less.

 

[OldSchoolMacGuy]

I thought no one wanted to buy Apple products? The iPhone X is a failure and too expensive for anyone to buy it. The HomePod is too expensive. The laptops and desktops all need to be updated before anyone will buy them and more.
[doublepost=1525207457][/doublepost]

Glad I bought more shares yesterday. w00t!

I'm glad I bought shares in the '90s.

 

[L-Viz]

How Sad, Macs, the backbone of this company, with less revenue than "Services", nobody wants to buy the outdated hardware...

 

[Baymowe335]

"Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter."
[doublepost=1525207644][/doublepost]

Never forget that EPS will continue to be artificially inflated by the share repurchase program.

Nothing artificial about real value.

They made $13.8B in profit, the most ever in Q2 for AAPL. Not good enough for you?

 

[ThatGuyInLa]

Should've colored the iPhone sales in the pie chat yellow. The Apple Pacman is gobbling up all of Apple's other divisions.

Yet another report that shows clearly why innovation and offerings in their desktop line-up is LOW priority and continuously frustrating for the few desktop end-users left.

 

[johnnygee]

I hain't a-buyin' me no red iPhone, if'n that's their idea of innovation. An' that there iPhone ex is too dadgum expensive. Hain't nobody buyin' it. They're doomed, I say, DOOMED!!

 

[Baymowe335]

How Sad, Macs, the backbone of this company, with less revenue than "Services", nobody wants to buy the outdated hardware...

They have 240M paid subscribers. Services is the future behemoth of this company and what investors are still missing.

Edit: Cook just confirmed they have over 270M paid subscribers. WOW! Up 30M in 90 days and 100M in 1 year. WOW, WOW, WOW.

 

[cuencap]

Should've colored the iPhone in the pie chat yellow. The Apple Pacman is gobbling up all of Apple's other divisions.

Yet another report that shows clearly why innovation and offerings in their desktop line-up is LOW priority and continuously frustrating for the few desktop end-users left.

MacRumors, can you create a line chart of Revenue Percentage by Category over time? Would be interesting to see how the different categories have contributed to the overall revenue over the quarters. Meaning, has AAPL become more/less dependent on a certain category over the quarters.

 

[Nozuka]

Remember when the X was announced at $999 and all the defenders said that the margins are worst.

El oh freaking el.

Sell less and make more money.

Btw I’m an owner of the X but let’s be honest, bean counter CEO raised the price to make more profits, not because the margins were less.

But it's going to be harder than usual to get me to invest this much money again. What could they possibly bring in the next few iPhones, that would get me to upgrade for that price again?

Seems like a short "victory".

 

[NoNothing]

Does this mean the S9 series is a total flop and that is the real reason Samsung scaled back OLED production?

 

[MrBat]

Apple has become a Phone and Services company.

Macs and even iPads are just side projects. Makes me sad, but this is what it is.

 

[Mebsat]

Thank you to MacRumors for moving the iPhone net sales to the top of the graph.
It is so much more readable this way since now the other trends don't disappear.

 

[BootsWalking]

All those predictions of doom for Apple this quarter were wrong again....

Nobody predicted doom and gloom - just flat iPhone sales, which is exactly what happened. What they're worried about is the future - you can't keep growing earnings when your sales are flat and people are showing resistance to further price increases.

 

[apolloa]

“We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables,” said Tim Cook, Apple’s CEO. “Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan.”

So a complete total and utterly different view to every supplier and analyst out there, that remark in China means nothing considering it’s market share is almost worthless now that analysts there put it in the “other” category.
I also SERIOUSLY doubt people have been chosing the iPhone X. And considering shares have fallen in the suppliers like TSMC and Foxcon based in iPhone X orders being slashed, I smell BS clever manipulation of the text around the figures. I have still not seen ONE X out in the wild, not one.

All this is doing is preparing for the price to be kept at the same level of the X for the 11, your a fool to think otherwise.

 

[L-Viz]

1. Apple has become a Phone and Services company.
   
   Macs and even iPads are just side projects. Makes me sad, but this is what it is.

   
   Vision and idealism don't count anymore. Only money. Apple dedicates all of its brain power to the iPhone ... and comes up with animated piles of crap...

 

[psingh01]

That graph shows why apple doesn't seem to focus on Macs as much as others.

 

[otternonsense]

I thought no one wanted to buy Apple products? The iPhone X is a failure and too expensive for anyone to buy it. The HomePod is too expensive. The laptops and desktops all need to be updated before anyone will buy them and more.

Well, the above are no less true, but clearly Cook having turned Apple overly miserly, greedy, self-serving and derivative has not put a dent on their brand popularity and profits.

Good products? Sure. Great products? I'm not expecting any such thing to come out of Cupertino again. Without competition, peer pressure or wallet-voting, they got their cake and get to eat it too. Why bother innovating or keeping all of their products up to date if people buy them for top dollar anyway?

 

[MacFather]

Deleted.

 

[CarpalMac]

The move to services shows how they recognised the profits were far too dependent on a single revenue stream (iPhone sales) and as well as mitigating risk, I'm sure the focus on services will help keep people within the Apple ecosystem.

The days of the Mac however are now firmly in the rear view mirror.