Apple Q1 2018 earnings, which is for the period of October to December 2017, were reported on February 1. Apple’s revenue was $88.3 billion for the Q1 earnings which is a new record. The company’s revenue was nearly $10 billion or 13 per cent up over revenue from Q1, 2017. It also appears that Apple’s strategy of launching a more expensive $999 iPhone X paid off and the device was the best-seller for the quarter, according to CEO Tim Cook. Here is a look at five important highlights from Apple’s Q1 earnings results.
Apple iPhone sales continue to drive revenue, iPhone X best-seller
Apple CEO Tim Cook announced that iPhone was the main driver in revenue and generated the highest revenue ever for the product. According to Cook, the iPhone X was the top selling phone every week since it was launched. He made the remarks in an investors earnings call and the full transcript of this is available on Seeking Alpha. Apple launched iPhone X only in November, which is mid-way through the quarter and this phone still managed to come out on top, despite reports that sales had not lived up to the market expectations.
Interestingly, iPhone X, iPhone 8, iPhone 8 Plus were the top three iPhones of the quarter, according to Tim Cook. Apple shipped 77.4 million iPhones in the quarter, which is actually a 1 per cent decline from Q1, 2017. The company had shipped 78.2 million iPhones in the same quarter last year. So while Apple actually shipped less iPhones, thanks to the increased prices, revenue rose by 13 per cent for this segment.
“The iPhone X was the most popular and that’s particularly noteworthy given that we didn’t start shipping until early November, and we’re constrained for a while. The team did a great job of getting into supply demand balance there in December,” Apple CEO Tim Cook said during the investor earnings call, according to the Seeking Alpha transcript.
Apple Watch saw 50 per cent growth in revenue
Apple did not share shipment numbers for the Watch yet again, but said the growth in revenue was 50 per cent for the smartwatch segment. Shipment units also saw double digit growth, according to Apple. Interestingly, the Watch Series 3 models saw twice the number of sales as Watch Series 2, revealed Tim Cook.
Apple’s website officially lists only Apple Watch Series 3 and Watch Series 1 models. In India, the Watch Series 2 is available on e-commerce sites like Flipkart, etc. The Apple Watch gained market share during the quarter, according to research firm International Data Corporation (IDC). Overall Apple’s revenue from wearables, which includes Beats headphones, AirPods, and Apple Watch was up 70 per cent year-on-year.
Apple Mac and iPad sales numbers
Apple CEO Tim revealed that iPad revenue grew (6 per cent yearly) thanks to iPad and iPad Pro sales. According to Cook, nearly 50 per cent of iPad buyers were first-time tablet consumers, switching to Apple and this trend was observed even in markets like Japan and France. Apple iPad shipments were at 13.1 million, which was an yearly growth of 1 per cent.
On the Macs, Apple sold 5.1 million of these. Cook revealed in the investor earnings call, 60 per cent of Mac sales were to first time buyers. In China, this number stood at 90 per cent, according to the Apple CEO. Apple also said that iPad sales grew in double-digits in India and other developing markets. But overall, Mac sales and revenue were down by 5 per cent on an yearly basis.
Apple revenue from services, App Store revenue
The revenue from services stood at $8.5 billion which is an 18 per cent increase on a yearly basis. Apple says it has 240 million paid subscriptions across services in the quarter ending December. The App Store also had its best holiday season ever, according to the company.
Apple’s active installed base of devices hits 1.3 billion in January
Apple also confirmed that the total number of active installed devices for the company now stands at 1.3 billion. Tim Cook pointed out this is an increase of 30 per cent in the last two years. “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 said in a press release.
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