This afternoon Apple announced their earnings, and for the quarter, they had record revenues of $88.293 billion, which is up 13% from the same…
This afternoon Apple announced their earnings, and for the quarter, they had record revenues of $88.293 billion, which is up 13% from the same quarter a year ago. Margins were down 0.1% to 38.4%. Apple had an operating income of $26.274 billion, up 16.2%, and a net income of $20.065 billion, up 12.1%, which translated to earnings per share of $3.92, up from $3.38 a year ago.
As usual, Apple’s iPhone continues to be the driving force behind Apple’s earnings. For the quarter, unit sales were down 1% from a year ago, but revenue was up 13%. Apple sold 77.3 million iPhones this quarter, with an average selling price of a staggering $796 per phone sold. It seems like Apple’s answer to a saturated market is to increase prices, and, at least for this quarter, it’s worked. Apple announced the iPhone X was the top-selling iPhone every week since it shipped in November.
iPad sales have leveled off for now, after declining for several years. For the quarter, Apple sold 13.2 million iPads, which is up 1% from a year ago. As with iPhone, revenue was up more than sales, at 6% gain, for revenue of $5.862 billion for the quarter. That works out to an ASP of $445.10 per iPad, so despite the lower priced iPad models, Apple is still selling enough Pros to continue to grow revenue.
Mac sales fell 5% in both terms of units sold and revenue. Apple sold 5.1 million Macs this quarter, compared to 5.3 million a year ago. Revenues were $6.9 billion, so ASP for Mac is $1348.78. The latest Mac refresh hasn’t been able to continue Apple’s record of outperforming the PC market, and for this quarter it looks like the rest of the PC market actually outperformed the Mac.
Services continue to grow, and has been the second largest part of Apple’s business for some time now. Revenues for services were up 18% for the quarter to $8.471 billion. Apple announced they have an install base of 1.3 billion active users now, and their users seem to be more eager to spend money with Apple, so even though Apple’s not known as a services company, they are likely very pleased with the growth they’ve seen here.
Apple’s Other Products is the collection of devices Apple doesn’t want to announce individual unit sales for, and includes Apple TV, Apple Watch, Beats, iPod, and accessories. For the quarter, revenues grew 36% to $5.489 billion, and it’s about to overtake iPad revenues at the growth rate they’ve been seeing.
It was inevitable that the phone market would saturate at some point, and Apple seems to have run into that wall after a decade of growth. Their higher priced items appear to be the way to continue revenue growth for the time being, and the record revenues this quarter are a testament to that working. This is always the big quarter for Apple though, so we’ll have to watch and see how they do the rest of their fiscal year.
Source: Apple Investor Relations
