Services are Apple's bright spot in a mostly flat fiscal Q2


— 4:00 PM on May 2, 2017

Apple's financial results for its fiscal 2017 second quarter are out. The company took in $52.9 billion in revenue, up 11% year-on-year. Its $14.1 billion in operating income was flat compared to the same period last year, and its gross margin of 38.9% was down half a percent from this time last year.

iPhone sales for the quarter totaled 50.8 million devices, down slightly from 51.2 million compared to a year ago. Apple brought in $33.25 billion from those sales, up slightly from the $32.9 billion it took in a year ago.

The iPad continued its streak of double-digit declines, moving 8.9 million units and bringing in $3.9 billion in revenue. iPad shipments were down 13% compared to a year ago, and iPad revenues are down 12%.

Mac numbers were a relative standout compared to Apple's other hardware. The company moved 4.2 million macOS devices for $5.8 billion in revenue. Mac volumes were up 4% and revenue was up 14% compared to this time a year ago.

Apple's services division continues to be one of its reliable growth stars. The division brought in $7 billion in revenue, up from $5.9 billion a year ago, for an 18% year-on-year increase. The company's Other Products divison also bucked the flat-as-an-iPad trend with $2.9 billion in sales, up 31% from $2.2 billion in revenue a year ago.

For its fiscal 2017 Q3, Apple expects revenue between $43.5 billion and $45.5 billion with gross margins between 37.5% and 38.5%.

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