Apple Posts Record Earnings Again As Q1 2018 Sees $88.3B Revenue & $20.1B Profit

Today, Apple announced their financial results for their fiscal first quarter of 2018, which is the holiday quarter, as Apple’s fiscal calendar runs from September to September. Apple earned $88.3 billion in revenue, and $20.1 billion in profit for $3.89 per diluted share. For comparison, Q1 of 2017 saw revenue of $78.4 billion, and profit of $17.9 billion for $3.36 per diluted share. The gross margin was 38.4 percent, compared to 38.5 percent in Q1 of 2017, and international sales provided 65% of the quarter’s revenue. Q1 of 2017 was Apple’s previous best quarter ever, and now they have topped it again.

The revenue, profit, and earnings per share numbers were company records all time for Apple’s first quarter, or for any of their quarters. The holiday quarter is their most important, and Apple just topped their own guidance of $84-87 billion in revenue. In terms of expectations for Q2 of 2018, Apple’s guidance is expected revenue of $60–62 billion. Apple has put all of their eggs in the holiday quarter basket once again, and it has delivered once again. The company now has $285 billion in cash, and marketable securities.

In terms of sales numbers, Apple sold 77.3 million iPhones, just off the 78.3 million in the year ago quarter. They also sold 13.2 million iPads, which is just up from the 13.1 million from the year ago quarter. The iPhone sales include the iPhone X, and account for 70% of Apple’s earnings. Beyond iOS, Apple sold 5.1 million Macs, down from the 5.4 in the year ago quarter.

You can listen to the full financial results conference call here. Apple proved once again that updating all of their products in the fall for the holiday quarter is a sound business strategy. Apple has pushed revenue up $10 billion, and profit up over $2 billion year over year for an over 12% increase in both aspects. The only question is if Apple can maintain momentum throughout the rest of the year with their strategy of putting their big new products in the fall.

No matter how you slice it, Apple is currently the most prolific tech company, and has somehow surpassed the outrageous quarterly expectations that they have generated. As CEO Tim Cook describes,

“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. 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.”

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