Apple Reports Record Revenue and Earnings for Q1 FY 2018

Last month Apple (NASDAQ: AAPL) reported record revenue and earnings for its fiscal 2018 first quarter for the period ended December 30, 2017. The

Subscription News: Apple Reports Record Revenue and Earnings for Q1 FY 2018

Source: Apple

Last month Apple (NASDAQ: AAPL) reported record revenue and earnings for its fiscal 2018 first quarter for the period ended December 30, 2017. The company posted quarterly revenue of $88.3 billion, a 13 percent increase year-over-year, an all-time record for the tech giant, and slightly higher than the company’s guidance. International sales represented 65 percent of the company’s revenue for the quarter. Earnings per diluted share for the quarter were $3.89 per share, an increase of 16 percent, also a record for the company.

‘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 Apple CEO Tim Cook in a news release.

‘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,’ Cook added.

Other highlights for the first quarter include:

  • Services revenue was $8.47 billion, or 13.76 percent, of total revenue. This is an 18 percent increase year-over-year. Services revenue includes money generated from the AppStore, Apple Pay and Apple Music. All other revenue is generated by products (iPhone, iPad, Mac and other products.)
  • The company sold 77.3 million iPhones, 13.17 million iPads and 5.1 million Macs, according to Venture Beat.
  • Cash flow from operations was $28.3 billion.
  • The company returned $14.5 billion to investors through its capital return program.
  • Apple’s board of directors declared a cash dividend of $0.63 per share, payable on February 15.

Apple offered the following guidance for the second quarter of its fiscal 2018:

  • Total revenue between $60 billion and $62 billion
  • Gross margin between 38 percent and 38.5 percent
  • Operating expenses between $7.6 billion and $7.7 billion

In other Apple news, the company opened its first store in Austria last weekend. Located in Vienna, the two-level store in the heart of a pedestrian shopping district has 150 employees who speak 44 languages to serve an international clientele.

Subscription News: Apple Reports Record Revenue and Earnings for Q1 FY 2018

Source: Apple

Since reporting its quarterly financials on February 1, Apple stock has wavered up and down from $167.78 per share to $176.21 as of 7:59 p.m. EST on March 2, 2018.

Subscription News: Apple Reports Record Revenue and Earnings for Q1 FY 2018

Source: Google Finance

Insider Take:

Apple reports another record quarter, but its news release and financials don’t reveal a lot of information about the company’s strategy or the success of its Apple Music subscription service. As long as Apple continues to pump out quality products, it seems likely that it will be successful, but we’d like to hear more about its services strategy, specifically its subscription numbers.

According to 9to5Mac, who cites a report from The Wall Street Journal, Apple Music adds new subscribers at a rate of 5 percent per month, compared to Spotify who is adding subscribers at 2 percent a month. Apple Music has confirmed that it now has 36 million paying Apple Music subscribers, up from 30 million reported last fall. Spotify has 70 million subscribers, and Pandora has 5.48 million subscribers to its Pandora Plus and Pandora Premium subscription products.

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