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Apple Reports Record Results for 1Q 2018: $20B Profit on $88B Revenue, 77.3M iPhones

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Apple today announced financial results for the first fiscal quarter of 2018, which corresponds to the fourth calendar quarter of 2017.

For the quarter, Apple posted revenue of $88.3 billion and net quarterly profit of $20.1 billion, or $3.89 per diluted share, compared to revenue of $78.4 billion and net quarterly profit of $17.9 billion, or $3.36 per diluted share, in the year-ago quarter. The revenue and earnings per share numbers were company records for any quarter in the company's history.

Gross margin for the quarter was 38.4 percent, compared to 38.5 percent in the year-ago quarter, with international sales accounting for 65 percent of revenue. Apple also declared an upcoming dividend payment of $0.63 per share, payable February 15 to shareholders of record as of February 12.

Screen-Shot-2018-02-01-at-4.36.21-PM.jpg

For the quarter, Apple sold 77.3 million iPhones, compared to 78.3 million in the year-ago quarter. iPad sales were up slightly to 13.2 million, up from 13.1 million a year ago, and Mac sales slipped to 5.1 million from 5.4 million.
"We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November," said Tim Cook, Apple's CEO. "We've also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That's an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers."
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Apple's guidance for the second quarter of fiscal 2018 includes expected revenue of $60-62 billion and gross margin between 38 and 38.5 percent.

Screen-Shot-2018-02-01-at-4.36.29-PM.jpg

Apple will provide live streaming of its fiscal Q1 2018 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

A loose summary of Apple's earnings call is embedded below in reverse chronological order.

Click here to read rest of article...

Article Link: Apple Reports Record Results for 1Q 2018: $20B Profit on $88B Revenue, 77.3M iPhones
 
Article Link
https://www.macrumors.com/2018/02/01/apple-q1-2018-results/
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How is this even possible?

On the iPhone X:
  • It's way too expensive at $1,000. Nobody will pay that much.
  • FaceID is useless, bring back TouchID.
  • That notch. Not only ugly but interferes with all my content and videos.
  • Glass back? I don't want a fragile phone.
On the iPhone 8:
  • Not enough of an upgrade from the iPhone 7.
  • They still kept the same basic design? Lame.
On Macs:
  • Still no Mac Mini updates? People are waiting.
  • iMac Pro? I can build a machine for 1/2 the price that's 3x as fast.
  • Still only 16GB on the MBP? I require 32GB to be productive.

So my question for all the naysayers and analysts is this. How does it feel to be wrong? Not just wrong, but utterly and spectacularly wrong?
 
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deanthedev said:
How is this even possible?

On the iPhone X:
  • It's way too expensive at $1,000. Nobody will pay that much.
  • FaceID is useless, bring back TouchID.
  • That notch. Not only ugly but interferes with all my content and videos.
  • Glass back? I don't want a fragile phone.
On the iPhone 8:
  • Not enough of an upgrade from the iPhone 7.
  • They still kept the same basic design? Lame.
On Macs:
  • Still no Mac Mini updates? People are waiting.
  • iMac Pro? I can build a machine for 1/2 the price that's 3x as fast.
  • Still only 16GB on the MBP? I require 32GB to be productive.

So my question for all the naysayers and analysts is this. How does it feel to be wrong? Not just wrong, but utterly and spectacularly wrong?
Click to expand...

they sold 1M less iphones than same quarter last year.
 
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Still waiting for Apple to slow down....

Services growth is going to be a great growth vehicle in the years to come. And I wouldn't be surprised if Apple makes a huge acquisition once they bring all of that cash back to the US. Either into a new category or the purchase of a large services company. I think it's inevitable.
 
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1 million less sold than Q1 of 2017. And that is with a completely redesigned model. This isn't a positive for a company that relies on the iPhone so much for their revenue.

EDIT:

*** Nevermind this, the quarter had one less week than the same quarter last year.******
 
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lazard said:
they sold 1M less iphones than same quarter last year.
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I don't think that's statistically significant. It's a small number, and Apple intentionally raised their average selling price. Had the average selling price remained the same the numbers would have been higher.
 
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deanthedev said:
How is this even possible?

On the iPhone X:
  • It's way too expensive at $1,000. Nobody will pay that much.
  • FaceID is useless, bring back TouchID.
  • That notch. Not only ugly but interferes with all my content and videos.
  • Glass back? I don't want a fragile phone.
On the iPhone 8:
  • Not enough of an upgrade from the iPhone 7.
  • They still kept the same basic design? Lame.
On Macs:
  • Still no Mac Mini updates? People are waiting.
  • iMac Pro? I can build a machine for 1/2 the price that's 3x as fast.
  • Still only 16GB on the MBP? I require 32GB to be productive.

So my question for all the naysayers and analysts is this. How does it feel to be wrong? Not just wrong, but utterly and spectacularly wrong?
Click to expand...
What are you on about? It's been pretty much a 100% consensus this would be a record breaking quarter since Apple's last reporting. Who do you think was wrong?
 
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MacFather said:
What do these Mac numbers show us? A stagnation, greed, or both?
Click to expand...

Looks like a stable market to me, with peaks during product refreshes. Overall Mac sales have been growing stronger than many PC OEM sales (Apple rose to fourth overall in 2017).


lazard said:
they sold 1M less iphones than same quarter last year.
Click to expand...

Almost assuredly due to the iPhone X being available for less time than the iPhone 8 family and the wait for that model.


69Mustang said:
It's been pretty much a 100% consensus this would be a record breaking quarter since Apple's last reporting.
Click to expand...

Yes, which is the point deanthedev is making - so many pundits and "analysts" have proclaimed the same "Apple is doomed" drumbeat all quarter and yet Apple posts record-breaking results yet again.
 
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MacFather said:
What do these Mac numbers show us? A stagnation, greed, or both?

Q1 12 - 5.20M Macs, $6.60B Revenue
Q1 13 - 4.06M Macs, $5.52B Revenue
Q1 14 - 4.84M Macs, $6.34B Revenue
Q1 15 - 5.52M Macs, $6.94B Revenue
Q1 16 - 5.31M Macs, $6.75B Revenue
Q1 17 - 5.37M Macs, $7.24B Revenue
Q1 18 - 5.11M Macs, $6.90B Revenue
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Stagnation mostly. I think they need to update the iMacs and Mac Mini more frequently. They also should be more aggressive with MacBook and 13" MacBook Pro pricing.
 
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Quite surprising to be honest. They sold 1M less iPhones. I guess taking away the headphone jack was more innovative (or maybe there is no such thing as bad publicity). Though there are software quirks with the iPhone X, in terms of hardware, I am very impressed with it, and I'm glad I got it.
 
deanthedev said:
How is this even possible?

On the iPhone X:
  • It's way too expensive at $1,000. Nobody will pay that much.
  • FaceID is useless, bring back TouchID.
  • That notch. Not only ugly but interferes with all my content and videos.
  • Glass back? I don't want a fragile phone.
On the iPhone 8:
  • Not enough of an upgrade from the iPhone 7.
  • They still kept the same basic design? Lame.
On Macs:
  • Still no Mac Mini updates? People are waiting.
  • iMac Pro? I can build a machine for 1/2 the price that's 3x as fast.
  • Still only 16GB on the MBP? I require 32GB to be productive.

So my question for all the naysayers and analysts is this. How does it feel to be wrong? Not just wrong, but utterly and spectacularly wrong?
Click to expand...

It’s not good to gloat.

But still, with all the FUD about the iPhone X recently and the frankly tedious wave of negative comments on every single article about it, it’s refreshing that the confirmed numbers at least prove otherwise. Best selling phone of the entire line & the revenue confirms this even with overall less iPhone sales.

Well, this pretty much happens every single year when there’s some silly article about lower sales or manufacturing slowing down. The cycle repeats.
 
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"Apple's average selling price for iPhone was $796, up from $695 in year-ago quarter. $999-and-up iPhone X certainly helped in that regard."

Seems that X sales must not have been too flat, then. Either than or a lot of people jumped on the 8/+ who traditionally would have purchased a lower end model.
 
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iPhone X is popular in the US and Europe as far as I notice, but I do not know many friends in Asia who own that. The price is too high for many countries. The phone practically costs you one month worth of salary to a lot of third world countries. I love my iPhone X, but I am skeptical it will continue to sell in Q2. Just my two cents.
 
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