Apple Q1 2018: 77.3 Million iPhones Sold, $88.3 Billion in Revenue [u]

Apple has announced their 2018 Q1 earnings, selling a staggering 77.3 million iPhones with a record quarterly revenue of $88.3 billion USD, an increase of 13% year over year. Net income was $20 billion, a nearly $3 billion increase compared to the year ago quarter. The company said international sales accounted for 65% of the quarter’s revenue.

Here is a breakdown of first quarter sales by device:

  • 77.3 million iPhones (-1% YoY); revenue increase 13% YoY
  • 13.1 million iPads (+1% YoY); revenue increase 6% YoY
  • 5.1 million Mac computers (-5% YoY); revenue decrease 5% YoY
  • Services (Digital Content, AppleCare, Apple Pay, licensing and other services): $8.4 billion; 18% increase YoY
  • Other Products (Apple TV, Apple Watch, Beats products, iPod touch and Apple-branded and third party accessories): $5.4 billion in revenue; 36% increase YoY

As for its next fiscal quarter in 2018, Apple is providing the following Q2 guidance:

• 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
• other income/(expense) of $300 million
• tax rate of approximately 15 percent

As for Apple’s cash pile, it now stands at a record $285.1 billion.

“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, in a press 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.”

Despite iPhone sales seeing a slight 1% decrease year over year, average iPhone selling price increased to $796 USD, which is almost a $100 increase compared to the year ago quarter. In other words, Apple made more revenue by selling fewer iPhone units, thanks to the price increase of iPhone X.

…more to follow