Apple 1Q18 earnings: record revenues, only 77 million iPhone sales
Apple doesn’t need that many iPhones to break records. The company was able to raise average sales prices and notch an all-time high for quarterly revenues during the holiday season of 2017.
The company grossed $88.293 billion, up 13 percent from the same time the year before. It had operating profit of $26.3 billion, up about 12 percent from 2016.
With 77.3 million iPhone sales grossing revenue of $61.6 billion, the average sales price rocketed to a record $796 with clear influence from the $999 iPhone X. There’s some encouragement in the ASP figure as it is close to the starting price of the base model iPhone 8 Plus.
“iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” said CEO Tim Cook.
Apple does not publish product mix for sales.
It was a down year for Macs with 5.1 million sales, down 5 percent annually, but a better year for iPads with 13.2 million sales, up 6 percent — it’s not clear if iPad Pro sales were cannibalizing the similarly-priced entry-level MacBooks. Service revenue jumped 18 percent on an annual basis, but was actually slightly down from the sequential quarter. The “Other Products” category, which includes Apple Watch and AirPods, is up 36 percent on the year to $5.49 billion.
Going ahead, Apple is forecasting between $60 billion and $62 billion in revenues for the March quarter — once again undercutting high street forecasts of $65.7 billion. It has been rumored that the behemoth cut orders to iPhone parts suppliers. The company will appease investors by putting $163 billion of its cash into its capital expenditures going forward.