Ap­ple posts record quar­ter

Ap­ple made a lot of money and sold a lot of phones in its most re­cent quar­ter. Michael Si­mon re­ports

iPad&iPhone user - - CONTENTS -

The re­ports of the iPhone X’s demise may have been a lit­tle pre­ma­ture. Ap­ple has posted its best sec­ond quar­ter in his­tory, with rev­enue of $61.1 bil­lion and quar­terly earnings per di­luted share of $2.73. That’s good for a rev­enue in­crease of 16 per­cent over 2017 and a mas­sive earnings-per-share boost of 30 per­cent.

But all any­one cares about is iPhone num­bers. On that front, Ap­ple sold 52.2 mil­lion hand­sets (an in­crease of 3 per­cent over last year) at an av­er­age sell­ing price

of $728 (about £533). While that’s not quite as high as last quar­ter’s $796 ASP (about £583), it far ex­ceeds last year’s $654 (about £479), and is a strong sign that iPhone X sales aren’t as dis­mal as an­a­lysts ex­pected.

In fact, Tim Cook took a mo­ment to brag a bit about the new­est iPhone: “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.” So, plenty of peo­ple are per­fectly happy to plunk down £999 for a new phone, and re­ports of or­der be­ing slashed ap­pear to be overblown. Dur­ing the call, Cook com­pared the iPhone X to a Su­per Bowl cham­pion: “I think it’s one of those things where a team wins a Su­per Bowl. Maybe you want them to win with a few more points, but it’s a Su­per Bowl win­ner and that’s how we feel about it.”

iPad sales were also up, with 9.1 mil­lion units sold ver­sus 8.9 mil­lion last year and 50 per­cent of pur­chases go­ing to new iPad users. Mac sales, how­ever, were down 3 per­cent to just over 4 mil­lion. Ap­ple’s all-im­por­tant Ser­vices cat­e­gory (Ap­ple Mu­sic, iCloud, Ap­ple Pay, sub­scrip­tions) con­tin­ued to soar, grow­ing more than 30 per­cent to $9.2 bil­lion. Fur­ther­more, Other Prod­ucts, which in­cludes Ap­ple Watch, HomePod, AirPods, and Ap­ple TV, bal­looned to nearly $4 bil­lion, an in­crease of 38 per­cent. Specif­i­cally, Cook said wear­able rev­enue was up nearly 50 per­cent over last year. HomePod sales weren’t bro­ken out and nei­ther Tim nor CFO Luca Maestri had much to say about Ap­ple’s new smart speaker.

Ap­ple also en­joyed growth in every ge­o­graphic seg­ment, most no­tably post­ing a 21 per­cent rev­enue

in­crease in China, where the iPhone X was the most pop­u­lar smart­phone and Ap­ple gained mar­ket share with the Mac. Else­where, Ja­pan grew by 22 per­cent, the Amer­i­cas by 17 per­cent, Europe by 9 per­cent, and Asia-Pa­cific by 4 per­cent. Cook said Ap­ple set a new first-half record in In­dia as well.

The tech gi­ant also an­nounced an ex­pected ex­pan­sion of its buy-back pro­gram, which in­cludes a new $100 bil­lion share re­pur­chase au­tho­riza­tion and a 16 per­cent in­crease in its quar­terly div­i­dend. Cook also said Ap­ple was nar­row­ing its search for a new cam­pus and ex­pects to add some 20,000 jobs in the US over the next five years.

Go­ing for­ward, Ap­ple ex­pects rev­enue be­tween $51.5 bil­lion and $53.5 bil­lion for the third quar­ter, which would be an­other record. The pre­vi­ous best third quar­ter was 2015, which saw $49.6 bil­lion in rev­enue. Ap­ple’s stock price bounced nearly 4 per­cent on the news

Tim Cook talked about the suc­cess of the iPhone X

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