Transcript of Everything Apple Said About Its Record-Breaking Fourth Quarter Earnings Results

Apple today reported revenue of $52.6 billion and net quarterly profit of $10.7 billion, or $2.07 per diluted share, in the fourth quarter of its 2017 fiscal year.

Apple's CEO Tim Cook and CFO Luca Maestri discussed the results on a conference call today. MacRumors has prepared a complete transcript of the call ahead.

Tim Cook


Good afternoon and thanks to everyone for joining us. As we close the books on a very successful fiscal 2017, I have to say I couldn't be more excited about Apple's future.

This was our biggest year ever in most parts of the world, with all-time record revenue in the United States, Western Europe, Japan, Korea, the Middle East, Africa, Central and Eastern Europe, and Asia. We had particularly strong finish this year, generating our highest September quarter revenue ever, as year-over-year growth accelerated for the fourth consecutive quarter. Continue reading Transcript of Everything Apple Said About Its Record-Breaking Fourth Quarter Earnings Results

Apple’s Mac Sales Up 25% Year-Over-Year in Q4 2017

Apple today announced financial results for the fourth fiscal quarter (third calendar quarter) of 2017, unveiling impressive Mac sales.

Apple sold 5.39 million Macs during the quarter, up from 4.89 million in the year-ago quarter, marking an 10 percent increase in shipments.


Mac revenue came in at $7.17 billion, up from $5.74 billion in the year-ago quarter, marking 25 percent growth. Overall revenue is likely up thanks to an increased price tag for the MacBook Pro, which saw prices raised in 2016 with the debut of Touch Bar models.

Apple this summer refreshed much of its Mac lineup, introducing new MacBook, MacBook Pro, and iMac models with Kaby Lake processors. At the end of this year, Apple plans to introduce the iMac Pro for its professional user base, and there are future plans to unveil a modular high-end Mac Pro, both of which should further boost Mac sales in the years to come.


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Apple Expected to Report Strong Summer Revenue of $50B+ as Focus Shifts to iPhone X Launch Quarter

Apple is set to report its earnings results for the fourth quarter of its 2017 fiscal year at 1:30 p.m. Pacific Time today.

The fiscal quarter reflects Apple's sales between July 2 and September 30 of 2017.

Apple provided the following guidance for its fourth quarter back on August 1:

• revenue between $49 billion and $52 billion
• gross margin between 37.5 and 38 percent
• operating expenses between $6.7 billion and $6.8 billion
• other income/expense of $500 million
• tax rate of 25.5 percent

Apple's guidance suggests the company will report at least its second best fourth quarter earnings results in its history.

Wall Street analysts forecast that Apple will report $50.7 billion revenue and earnings per share of $1.87, according to 29 estimates averaged by Thomson Reuters.

A quarter-by-quarter look at Apple's revenue since the 2009 fiscal year:
Fourth Quarter Revenue
• 2013: $37.5B
• 2014: $42.1B
• 2015: $51.5B
• 2016: $46.9B
2017: $49B+


MacRumors.com compiled fourth quarter estimates from several financial institutions and analysts tracking Apple and the company's stock. The figures are listed below, ranked from highest to lowest in quarterly revenue.


Apple's fourth quarter earnings results will provide the first official indication of how well the iPhone 8 and iPhone 8 are selling. The devices became available to pre-order on September 15, just over two weeks before the quarter ended, and launched in stores one week later on September 22.

Multiple reports have suggested that demand for the iPhone 8 and iPhone 8 Plus has been tepid, but that could be a side effect of pent up demand for the iPhone X. Apple staggered the release of its high-end smartphone, for which pre-orders began October 27, nearly six weeks after the iPhone 8 and iPhone 8 Plus.

The most interesting takeaway will be Apple's guidance for the quarter we're in right now, which encompasses the launch of the iPhone X and the busy holiday shopping season. Over the past year, analysts have repeatedly predicted the highly-anticipated device will drive a significant "supercycle" of upgrades.

A high guidance range would suggest that Apple expects the iPhone X to sell very well, while a lower one would suggest that either demand is lower than thought or that Apple continues to face issues with ramping up supply of the device.

In addition to iPhone sales, investors will be looking for continued growth of Apple's services category, which includes the likes of the App Store, iTunes Store, Apple Music, Apple Pay, AppleCare, and licensing fees. Apple's services revenue grew 22 percent to an all-time record of $7.3 billion last quarter.

Apple's services category has become the size of a Fortune 100 company, according to chief executive Tim Cook.

Cook and Apple's financial chief Luca Maestri will discuss the company's earnings results on a conference call at 2:00 p.m. Pacific Time. MacRumors.com will transcribe the call as it unfolds for those unable to listen.

Tags: earnings, AAPL

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Apple to Announce Q4 2017 Earnings on November 2

Apple today updated its investor relations page to announce that the company will share its earnings for the fourth fiscal quarter (third calendar quarter) of 2017 on Thursday, November 2.

The earnings release will provide a look at iPhone 8 and iPhone 8 Plus sales during their first week of availability. Apple has not provided launch weekend sales for the new devices, so this will be the first look at how well the updated devices sold compared to the iPhone 7 and iPhone 7 Plus last year.


Apple's guidance for the fourth quarter of fiscal 2017 includes expected revenue of $49 to $52 billion and gross margin between 37.5 and 38 percent. In 4Q 2016, Apple posted revenue of $46.9 billion and gross margin of 38 percent.

The quarterly earnings statement will be released at 1:30 PM Pacific/4:30 PM Eastern, with a conference call to discuss the report taking place at 2:00 PM Pacific/5:00 PM Eastern. MacRumors will provide coverage of both the earnings release and conference call on November 2.

Tag: earnings

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Transcript: Here’s Everything Tim Cook Said About Apple’s Impressive June Quarter Today

Apple today reported revenue of $45.4 billion and net quarterly profit of $8.7 billion, or $1.67 per diluted share, in its fiscal third quarter ended June 24.

Apple CEO Tim Cook and CFO Luca Maestri discussed the results on a conference call today. MacRumors has prepared a complete transcript of the call ahead.

Tim Cook


Good afternoon, and thanks everyone for joining us. Today, we're proud to announce very strong results for our fiscal third quarter, with unit and revenue growth in all of our product categories. We'll review our financial performance in detail, and I'd also like to talk about some of the major announcements we made in June at our Worldwide Developers Conference. It was our biggest and best WWDC ever, and the advancements we introduced across hardware, software, and services will help us delight our customers, and extend our competitive lead this fall, and well into the future.

For the quarter, total revenue was at the high end of our guidance range at $45.4 billion. That's an increase of 7 percent over last year, so our growth rate has accelerated in three consecutive quarters this fiscal year. Gross margin was also at the high end of our guidance, and we generated a 17 percent increase in earnings per share. iPhone results were impressive, with especially strong demand at the high end of our lineup. iPhone 7 was our most popular iPhone, and sales of iPhone 7 Plus were up dramatically compared to 6s Plus in the June quarter of last year. The combined iPhone 7 and 7 Plus family was up strong double digits year over year. One decade after the initial iPhone launch, we have now passed 1.2 billion cumulative iPhones sold. Continue reading Transcript: Here’s Everything Tim Cook Said About Apple’s Impressive June Quarter Today

Apple Increased AirPods Production Capacity, But Still Unable to Meet Demand

During today's earnings call covering the third fiscal quarter of 2017, Apple CEO Tim Cook briefly mentioned the company's super popular hard-to-come-by wireless earphones, the AirPods.

According to Cook, production capacity has been bumped up, but because of the high level of demand, Apple is still unable to make enough to reach supply/demand balance.
We're also seeing incredible enthusiasm for AirPods. 98 percent customer satisfaction based on Creative Strategy's survey. We have increased production capacity for AirPods and are working very hard to get them to customers as quickly as we can, but we are still not able to meet the strong level of demand.
Priced at $159, Apple's AirPods are wire-free earphones that feature Bluetooth and an Apple-designed W1 chip for a better connection and simple transfers between different devices. AirPods are equipped with an infrared sensor to detect when they're in the ear, and they support a range of touch-based gestures.

Since launch, AirPod supplies have been severely constrained and ship out from the online Apple Store in the U.S. in six weeks. That six week mark has not budged since December, but Apple retail stores occasionally have them in stock as do third-party retailers like Best Buy.


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Apple Increased AirPods Production Capacity, But Still Unable to Meet Demand

During today's earnings call covering the third fiscal quarter of 2017, Apple CEO Tim Cook briefly mentioned the company's super popular hard-to-come-by wireless earphones, the AirPods.

According to Cook, production capacity has been bumped up, but because of the high level of demand, Apple is still unable to make enough to reach supply/demand balance.
We're also seeing incredible enthusiasm for AirPods. 98 percent customer satisfaction based on Creative Strategy's survey. We have increased production capacity for AirPods and are working very hard to get them to customers as quickly as we can, but we are still not able to meet the strong level of demand.
Priced at $159, Apple's AirPods are wire-free earphones that feature Bluetooth and an Apple-designed W1 chip for a better connection and simple transfers between different devices. AirPods are equipped with an infrared sensor to detect when they're in the ear, and they support a range of touch-based gestures.

Since launch, AirPod supplies have been severely constrained and ship out from the online Apple Store in the U.S. in six weeks. That six week mark has not budged since December, but Apple retail stores occasionally have them in stock as do third-party retailers like Best Buy.


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Tim Cook Says Apple is ‘Very Focused on Autonomous Systems’

It's no secret that Apple is working on an autonomous driving system, thanks to statements from Apple CEO Tim Cook, information published by the DMV, and the presence of Apple's autonomous test vehicles on the road, but during today's earnings call, Cook re-emphasized Apple's deep interest in the technology, and he even hinted Apple's work on autonomy could be used for more than vehicles.

"In terms of autonomous systems, what we've said is that we are very focused on autonomous systems from a core technology point of view," Cook said. "We do have a large project going, and we're making a big investment in this from our point of view."


Cook went on to call autonomy "the mother of all AI projects," a statement he's shared before in an interview with Bloomberg. Cook also hinted that Apple has other autonomous projects in the works beyond a car system.

"Autonomous systems can be used in a variety of ways -- a vehicle is only one, but there are many different areas of it. And I don't want to go any further with that," he said.

Apple has presumably been working on an autonomous driving system since 2014, when rumors of its efforts to create an electric vehicle first surfaced. Apple has now moved away from creating a full vehicle and is said to be focusing on self-driving technology instead.

Since April, Apple has been testing its autonomous driving system in several Lexus RX450h SUVs, which can be spotted on the roads around its Cupertino headquarters.

Related Roundup: Apple Car
Tags: Tim Cook, earnings

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Apple CEO Tim Cook Evades Questions on Alleged Plans to Build Three ‘Big’ U.S. Factories

Last week, United States President Donald Trump told The Wall Street Journal that Apple had plans to build three "big, big, big" manufacturing plants in the United States, a statement that allegedly came from Apple CEO Tim Cook.

Unsurprisingly, Cook was questioned about the president's statement during the question and answer portion of today's earnings call, and he deftly dodged it by highlighting Apple's overall efforts to increase jobs in the United States.

Apple CEO Tim Cook at the Executive Tech Summit at Trump Tower in December of 2016

Cook said Apple has created two million jobs in the United States, across three separate categories. The first, responsible for about 2/3rds of those jobs, is the App Store and the Apple developer community.

Cook said Apple is making an enormous effort in this area by encouraging children and college students to get into coding through Swift-based curriculum that's been introduced in schools around the world.

The second category, according to Cook, is Apple's manufacturing purchases. Last year, Apple purchased $50 billion in goods and services from U.S. based suppliers, and has been aiming to increase that. Apple in May announced a $1 billion Advanced Manufacturing Fund meant to encourage innovation among U.S.-based manufacturers. Corning became the first recipient of the fund in mid-May, and Cook says the money will be used to expand the company's Kentucky plant to make innovative glass.

"There are several plants that can benefit from having some investment to grow, expand, or set up ship in the U.S. for the first time," said Cook. "We're excited."

The third category relates to Apple's own facilities in the United States, like its Cupertino-based campuses that employ thousands of employees. Cook didn't have much to say about this category, but he hinted at announcements coming later this year, potentially giving some weight to Trump's statement about job creation.

"Two thirds of our employee base is in the United States, despite only one third of revenue being here," Cook said. "We have some things we'll say about that later in the year."

Cook said that Apple does feel that it has a responsibility to create jobs in the United States. "We do view that we have a responsibility in the United States to increase economic activity and increase jobs. Apple could only have been created here," Cook said.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.


Discuss this article in our forums

Apple CEO Tim Cook Evades Questions on Alleged Plans to Build Three ‘Big’ U.S. Factories

Last week, United States President Donald Trump told The Wall Street Journal that Apple had plans to build three "big, big, big" manufacturing plants in the United States, a statement that allegedly came from Apple CEO Tim Cook.

Unsurprisingly, Cook was questioned about the president's statement during the question and answer portion of today's earnings call, and he deftly dodged it by highlighting Apple's overall efforts to increase jobs in the United States.

Apple CEO Tim Cook at the Executive Tech Summit at Trump Tower in December of 2016

Cook said Apple has created two million jobs in the United States, across three separate categories. The first, responsible for about 2/3rds of those jobs, is the App Store and the Apple developer community.

Cook said Apple is making an enormous effort in this area by encouraging children and college students to get into coding through Swift-based curriculum that's been introduced in schools around the world.

The second category, according to Cook, is Apple's manufacturing purchases. Last year, Apple purchased $50 billion in goods and services from U.S. based suppliers, and has been aiming to increase that. Apple in May announced a $1 billion Advanced Manufacturing Fund meant to encourage innovation among U.S.-based manufacturers. Corning became the first recipient of the fund in mid-May, and Cook says the money will be used to expand the company's Kentucky plant to make innovative glass.

"There are several plants that can benefit from having some investment to grow, expand, or set up ship in the U.S. for the first time," said Cook. "We're excited."

The third category relates to Apple's own facilities in the United States, like its Cupertino-based campuses that employ thousands of employees. Cook didn't have much to say about this category, but he hinted at announcements coming later this year, potentially giving some weight to Trump's statement about job creation.

"Two thirds of our employee base is in the United States, despite only one third of revenue being here," Cook said. "We have some things we'll say about that later in the year."

Cook said that Apple does feel that it has a responsibility to create jobs in the United States. "We do view that we have a responsibility in the United States to increase economic activity and increase jobs. Apple could only have been created here," Cook said.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.


Discuss this article in our forums