Apple Announces Q2 FY 2018 Results: Another Record Quarter
by Brett Howse on May 1, 2018 6:00 PM EST- Posted in
- Smartphones
- Apple
- iPhone
- Financial Results
This afternoon, Apple announced their earnings for the second quarter of their 2018 fiscal year, and the company has set a new revenue record for the quarter with $61.1 billion in revenue. Apple had a gross margin of 38.3% for the quarter, down slightly from the 38.9% margin a year ago. Operating income for the quarter was up 12.7% to $15.9 billion, and net income was up 25% to $13.8 billion. Earnings per share came in at $2.73, up 30% from a year ago.
| Apple Q2 2018 Financial Results (GAAP) | |||||
| Q2'2018 | Q1'2018 | Q2'2017 | |||
| Revenue (in Billions USD) | $61.137 | $88.293 | $52.896 | ||
| Gross Margin (in Billions USD) | $23.422 | $33.912 | $20.591 | ||
| Operating Income (in Billions USD) | $15.894 | $26.274 | $14.097 | ||
| Net Income (in Billions USD) | $13.822 | $20.065 | $11.029 | ||
| Margins | 38.3% | 38.4% | 38.9% | ||
| Earnings per Share (in USD) | $2.73 | $3.92 | $2.10 | ||
As always with Apple, the bulk of their revenue came from the iPhone, which pulled in $38.0 billion this quarter on sales of 52.2 million devices. Apple doesn’t break down which phones were sold, but Tim Cook did say “Customers chose iPhone X more than any other iPhone each week in the March quarter” and that’s clear from the revenue, which was up 14% from last year, on only 3% unit sales increase, so the average selling price for iPhone is now $728.34.
iPad had a small gain in sales this quarter as well, with 9.1 million devices sold, which is up 2% from a year ago. Revenue for iPad was $4.1 billion, which was up 6%, so like iPhone, Apple is earning more per device sold than previously.
Mac sales slumped, down 3% from a year ago to 4.1 million Macs sold, but thanks to higher revenue per device for Mac as well, the revenue was flat compared to last year.
While iPad and Mac were once the other horses in the Apple stable, they’ve been eclipsed by Apple’s services, which includes digital content, AppleCare, Apple Pay, and other services. Apple had revenues of $9.2 billion for this quarter on services alone, which is growth of 31% from last year. Unlike their other products, the services also didn’t dip from the Christmas quarter either, with sequential growth of 8% compared to Q1 2018.
| Apple Q2 2018 Device Sales (thousands) | |||||
| Q2'2018 | Q1'2018 | Q'2017 | Seq Change | Year/Year Change | |
| iPhone | 52,217 | 77,316 | 50,763 | -38% | +3% |
| iPad | 9,113 | 13,170 | 8,922 | -31% | +2% |
| Mac | 4,078 | 5,112 | 4,199 | -20% | -3% |
Apple’s Other Products, which includes AirPods, Apple TV, Apple Watch, Beats, iPod, and accessories, also continues to have strong growth, with $3.9 billion in revenue for the quarter, which is up 38% from a year ago.
Despite concerns about iPhone X sales by analysts, Apple has yet again set the bar on how to print money. And, they’ve done it with the iPhone only being 62% of their revenue for this quarter. It’s been well over 70-75% in the past. At the growth rate of services, it’s close to the combined revenue of the iPad and the Mac.
Apple has also announced a further $100 billion in shares will be repurchased, and they are raising the dividend 16%. For the third quarter, they are projecting revenue between 51.5 and 53.5 billion, with margins between 38 and 38.5%.
Source: Apple Investor Relations
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id4andrei - Thursday, May 3, 2018 - link
I read about it and the throttling is permanent. Geekbench found an iphone 7 permanently throttled to 80% of its much vaunted performance. This has nothing to do with efficiency or some feature that only Apple discovered. This was sweeping under the rug a design flaw where the built-in battery could not sustain the SoC's demands.There were enough iphones affected for Apple to issue a limited recall. After the recall Apple issued the patch to save them from a total recall. It doesn't have to happen on all phones, just plenty for any given sample to warrant a recall. As we speak, there are millions and even tens of millions of people with iphones 6, 6s and 7 that are permanently kneecapped. Some of these phones are under warranty.
name99 - Wednesday, May 2, 2018 - link
Where by "mixed customer satisfaction with iPhone X you mean off-the-chart numbers?97% satisfied with the device, 85% highly satisfied?
Perhaps if you consulted actual reality rather than whatever echo chamber you live in, you might better understand why Apple continues to do well regardless of your assertions and predictions?
Visual - Friday, May 4, 2018 - link
I can't believe they sold 52 million iPhones when... there are only 7-8 million people on earth?? fake accunts..?melgross - Wednesday, May 2, 2018 - link
They did. They had hit $183.50. But analysts, including some I’ve never heard of, were saying that Apple’s sales had dropped so much, that the stock dropped to $163. Now, it’s mostly back.One big reason was that Samsung stated that it’s flexable OLED screen sales were only up 3.5%. So, naturally, it was assumed that it was Apple’s iPhone X sales that were down. But it turns out that it’s Samsung’s own Galaxy S series whose sales are down.
jjj - Tuesday, May 1, 2018 - link
" the iPhone only being 62% of their revenue for this quarter. It’s been well over 70-75% in the past"In every article you write, there are one or two such false assumptions.
The iPhone is heavy in Q4 and , in good cycles, in Q1 but if you look at it for the year, to exclude the well understood quarterly variations, the shift is in the other direction as Mac and iPad are not growing at all. . Checked 3 years just to provide clear proof but feel free to check every year. In calendar 2011 the iPhone was 46.7% of revenue, in 2014 the iPhone was 60.5% of revenue and in 2017 it was 62.1%. It will be more than that in 2018, mostly due to the ASP increase and again more in 2019 on likely units increases.
In practice it is a lot more than that percentage as the segment does not include accessories, software and services that are directly impacted by iphone sales.
id4andrei - Wednesday, May 2, 2018 - link
Since Apple has for the very first time 3 new iphones maybe the analysts still have a leg to stand on. With each of the 8, 8+ and X about a third, with the X a little over a third, TC's statement is true. The X sold more than the 8 or 8+. However, since last year Apple had two iphones, nominally speaking, the 7 or 7+(whichever sold more) could have sold higher numbers than the X.Ofc since the X has a higher margin, for about the same number of total iphones, the ASP will be and is higher.
haukionkannel - Wednesday, May 2, 2018 - link
Buying customers Are newer wrong, so the iPhoneX was not too expensive!Waiting for the next price upgrade :)
id4andrei - Wednesday, May 2, 2018 - link
I never said they're wrong. It's just possible to sell less iphones X than the previous gen(7 or 7+ whichever sold more) YoY and still have better profits because the X has higher margin.melgross - Wednesday, May 2, 2018 - link
Just like to know why Apple’s phones haven’t been reviewed thi ea, l phone almost nobody I’ll ver buy, hv Ben, a ll as a lot of other junk.We were also promised a deep dive into Apple’s SoCs last year, but that never happened, nor has it happened this year.
Frankly I don’t care in the slightest about a way to hack the Galaxy 9 to get better performance out of that miserable phone.
id4andrei - Wednesday, May 2, 2018 - link
Thankfully Anandtech doesn't revolve exclusively around Apple or your whims.