Ap­ple’s lat­est re­sults

Iphone and ipad sales are sur­pris­ingly flat, but Ap­ple still soars to record rev­enue in first quar­ter. Michael Si­mon re­ports

Macworld - - Contents -

If iphone X is slump­ing, it’s sure not af­fect­ing Ap­ple’s bot­tom line. In the quar­ter end­ing De­cem­ber 31, 2017, Ap­ple re­ported a record rev­enue of $88.3 bil­lion, a 13 per­cent in­crease over last year’s $78.4 bil­lion (which was also a record). Ad­di­tion­ally, Ap­ple posted an all-time record quar­terly earn­ings per di­luted share of $3.89.

And that’s with one less week of sales over last year’s first quar­ter.

Lead­ing the way was the iphone, but not due to unit sales. Ap­ple moved 77.3 mil­lion iphones in the three-month hol­i­day quar­ter, about a mil­lion less than last year, but rev­enue grew by more than $7 bil­lion to $61.6 bil­lion. While Ap­ple didn’t break out the dif­fer­ent mod­els of iphone, it’s clear that the higher price of iphone X con­trib­uted to the gains. Tim Cook said the re­designed hand­set “sur­passed our ex­pec­ta­tions and has been our top-sell­ing iphone every week since it shipped in Novem­ber.”

Ap­ple sold 5.1 mil­lion Macs and 13.2 mil­lion ipads dur­ing the pe­riod, ver­sus 5.5 mil­lion and 13.1 mil­lion over the pre­vi­ous pe­riod. Ap­ple’s stock jumped more than 3 per­cent on the news.

De­spite some­what weak sales, the iphone X was seem­ingly a stronger per­former over­seas, with all of its op­er­at­ing seg­ments post­ing year-over-year rev­enue growth. In the all-im­por­tant Greater China re­gion, rev­enue grew 11 per­cent, and Ja­pan was par­tic­u­larly strong with 26 per­cent growth.

An­other big seller over the hol­i­day quar­ter was Ap­ple Watch and Airpods. While Ap­ple doesn’t specif­i­cally re­lease num­bers for these prod­ucts, rev­enue in the “Other Prod­ucts” cat­e­gory (of which they are a part) surged more than 35 per­cent to $5.5 bil­lion. Chief Fi­nan­cial Of­fi­cer

Luca Maestri said rev­enue from wear­ables was up 70 per­cent year over year, with the prod­uct cat­e­gory con­tribut­ing more rev­enue than any other prod­uct be­sides iphone.

Ad­di­tion­ally, Cook said sales of Ap­ple Watch were up 50 per­cent for the fourth con­sec­u­tive

quar­ter, and Se­ries 3 sales were more than twice that of Se­ries 2 a year ago.

In Jan­uary, Ap­ple topped 1.3 bil­lion ac­tive de­vices for the first time, a 30 per­cent jump in two years. The in­flux of new users helped push its Ser­vices rev­enue to $8.5 bil­lion, an in­crease of 18 per­cent over the 2017 but slightly down from the pre­vi­ous quar­ter.

For the sec­ond quar­ter, Ap­ple projects rev­enue be­tween $60 bil­lion and $62 bil­lion, the first quar­ter the in­cludes sales of Homepod, Ap­ple’s first smart speaker. That would rep­re­sent an in­crease of roughly 15 per­cent over last quar­ter’s $52.9 bil­lion.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.