App Store, Apple Music, iCloud and Apple Pay Set All Time Quarterly Revenue Records in Q1 2018

Apple's services category continues to grow rapidly, and in the first fiscal quarter of 2018, Apple services, which includes iTunes, the App Store, Apple Music, iCloud, Apple Pay, and AppleCare, saw revenue of $8.5 billion, up 18 percent year over year.

The App Store saw its best holiday season ever, and Q1 2018 marked the best quarter ever for not only the App Store, but also Apple Music, iCloud, and Apple Pay. Apple Music, iCloud, and Apple Pay all saw significant growth in active users.

Paid subscriptions passed 240 million by the end of the December quarter, which Apple says is an increase of $30 million in the last 90 days alone, the largest quarterly growth ever.

Apple CEO Tim Cook says Apple is well on its way to reaching its goal to double its services revenue by 2020.


Discuss this article in our forums

Apple Reports Record Results for 1Q 2018: $20B Profit on $88B Revenue, 77.3M iPhones

Apple today announced financial results for the first fiscal quarter of 2018, which corresponds to the fourth calendar quarter of 2017.

For the quarter, Apple posted revenue of $88.3 billion and net quarterly profit of $20.1 billion, or $3.89 per diluted share, compared to revenue of $78.4 billion and net quarterly profit of $17.9 billion, or $3.36 per diluted share, in the year-ago quarter. The revenue and earnings per share numbers were company records for any quarter in the company's history.

Gross margin for the quarter was 38.4 percent, compared to 38.5 percent in the year-ago quarter, with international sales accounting for 65 percent of revenue. Apple also declared an upcoming dividend payment of $0.63 per share, payable February 15 to shareholders of record as of February 12.


For the quarter, Apple sold 77.3 million iPhones, compared to 78.3 million in the year-ago quarter. iPad sales were up slightly to 13.2 million, up from 13.1 million a year ago, and Mac sales slipped to 5.1 million from 5.4 million.
“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. “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.”
Apple's guidance for the second quarter of fiscal 2018 includes expected revenue of $60-62 billion and gross margin between 38 and 38.5 percent.


Apple will provide live streaming of its fiscal Q1 2018 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call starts at 2:00 PM Pacific - No need to refresh

Loading live updates...



Discuss this article in our forums

Apple Expected to Report Highest Revenue in Single Quarter in Company’s History

Apple is set to report its earnings results for the first quarter of its 2018 fiscal year at 1:30 p.m. Pacific Time on Thursday.

The fiscal quarter reflects Apple's sales between October 1 and December 30 of 2017.

Apple provided the following guidance for its fourth quarter back on November 2:

• revenue between $84 billion and $87 billion
• gross margin between 38 and 38.5 percent
• operating expenses between $7.65 billion and $7.75 billion
• other income/expense of $600 million
• tax rate of 25.5 percent

Apple's guidance suggests the company will easily beat its current all-time quarterly revenue record of $78.4 billion set a year ago.

Wall Street analysts forecast that Apple will report $87.06 billion revenue and earnings per share of $3.83, according to 29 estimates averaged by Yahoo Finance.

A quarter-by-quarter look at Apple's revenue since the 2009 fiscal year:
Apple's FY Q1 Rev.
2014: $57.6B
2015: $74.6B
2016: $75.9B
2017: $78.4B
2018: $84B+


MacRumors has compiled fiscal first quarter estimates from several financial institutions and analysts tracking Apple's earnings results and stock.


Key Takeaways and What to Look For

Was the iPhone X a hit? Apple began taking iPhone X orders on October 27, roughly four weeks after the quarter began, so investors will be closely examining Apple's total number of iPhones sold to see if the flagship smartphone had a measurable impact. Apple doesn't reveal iPhone sales on a model-by-model basis, however, so its total will include sales of the iPhone 8, iPhone 8 Plus, and older models in its smartphone lineup. Apple's mark to beat is 78.3 million iPhones sold in the year-ago quarter.

As noted by Apple analyst Neil Cybart in his earnings preview for Above Avalon, Apple's average selling price for iPhones will also be an important metric. With the iPhone X starting at $999 in the United States, investors will undoubtedly be looking for an increase in how much customers are spending on iPhones.

Will the HomePod delay have any affect? Apple originally said that its HomePod speaker would launch in December, which would have been within the final month of the quarter. Instead, orders began last week, after the quarter, and this could have a marginal impact on Apple's forecasted revenue.

How strong will Apple's second quarter guidance be? Apple's forecasted revenue for the second quarter of its 2018 fiscal year, reflecting the January-March period, should prove whether iPhone X demand has significantly declined as suggested by The Wall Street Journal and Japan's Nikkei Asian Review. Apple CEO Tim Cook has dismissed these types of reports in the past, noting that the company's supply chain is very complex and that any singular data point is not a great proxy for what's going on.

Will there be services growth? Apple said it reached over $30 billion revenue in its 2017 fiscal year for services, such as the App Store, Apple Music, iCloud, and iTunes, making this part of its business the size of a Fortune 100 company. Investors will be looking for continued growth in this category. The mark to beat is $7.1 billion in the year-ago quarter.

iMac Pro orders began on December 14, roughly two weeks before the end of the quarter, which could give a small boost to Mac sales.


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 on Thursday. MacRumors will transcribe the call as best as possible for those unable to listen.

Tags: earnings, AAPL

Discuss this article in our forums

Apple to Announce Q1 2018 Earnings on February 1

Apple today updated its investor relations page to announce that it will share its earnings results for the first fiscal quarter of 2018 on Thursday, February 1.

The earnings report will give us our first real look at iPhone X sales, as well as sales of the iPhone 8 and the iPhone 8 Plus throughout the holiday quarter. The iPhone X did not go on sale until November 3, and it was not included in Apple's fourth quarter earnings report.


Guidance for the first fiscal quarter of 2018 includes expected revenue of $84 to $87 billion and gross margin between 38 and 38.5 percent. It will be a record setting quarter even at the low end of the guidance range, as Apple saw $78.4 billion in revenue in Q1 2017.

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


Discuss this article in our forums

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.


Discuss this article in our forums

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

Discuss this article in our forums

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

Discuss this article in our forums

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.


Discuss this article in our forums