Apple 4Q17 earnings and sales recover to above 2015 levels

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Apple is back above record territory for earnings. The fourth fiscal quarter of 2017 saw a recovery from a downward year in 2016 and even a peak in gross revenue above the best-ever 2015 result.

Data4Q174Q164Q15 vs. '16 vs. '15
Revenue$52.6B$46.9B$51.5B+12%+2%
Net income$10.7B$9.0B$11.1B+19%-4%
iPhones shipped46.7M45.5M48.0M+3%-3%
iPhone average price$618$619$670-0%-8%
iPads shipped10.33M9.27M9.88M+11%+5%
Macs shipped5.39M4.89M5.71M+10%-6%
Service revenue$8.50M$6.33M$5.09M+34%+67%
Other product rev.$3.23M$2.37M$3.05M+36%+6%

Service-derived revenue was bumped up with a $600 million one-time benefit — even without it, it would have still been up 24 percent year-over-year.

Apple Music subscribership has shot up 75 percent annually. Paid subscriptions for all services, including apps, reached 210 million to this point. The Apple Pay user base doubled in the past year while transactions tripled. Thanks to the MacBook Pro, Mac sector revenues are up 25 percent from 2016 with several markets growing above a 20 percent pace. Apple Watch Series 3 continues wearables growth of 50 percent for a third quarter in a row.

The upcoming quarter being the holiday season, the iPhone X is expected to star. Production is ramping up, the company claims, though investor concerns about tight initial supply have them gutting for perhaps a bump in March. CEO Tim Cook claims that hundreds have been lined up in Sydney for a spare unit to purchase at the Apple Store on George Street.

“The ramp for iPhone X is going well, especially considering that iPhone X is the most advanced iPhone we’ve ever created,” Cook said. “I can’t predict at this point when that balance will happen.”

Revenue in China grew to $9.8 billion with healthy iPad and iPhone upgrade points this quarter around and declines from the Hong Kong market have “moderated,” in Cook’s word. Average sales prices are still closer to the low end as opposed to elsewhere. The overall uptick, though, counters quarter after quarter of decline in the region.

Apple’s valuation has risen above the $900 billion mark and may hit $1 trillion within the next year — it has over $250 billion in cash reserves stored overseas and continues to issue notes in US and Canadian currency. AAPL shares are up nearly 2.5 percent in after-hours trading.

The company is forecasting revenue between $84 billion and $87 billion.

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About The Author
Jules Wang

Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.