Apple revenue hits an all-time high in its fiscal first quarter

Apple released its fiscal 2017 first-quarter financial results today. Over the holiday season, the company raked in $78.3 billion, up 3% from this time last year, and it made $23.4 billion on that take, slightly less than the $24.2 billion it made this time last year. Apple claims that revenue figure is an all-time record, and it also reported an all-time earnings-per-share record of $3.36 for the quarter. Gross margin rang in at 38.5%, down slighly from the 40% figure from this time last year.

Those record numbers rode in on the back of 78.3 million iPhones sold, a 5% increase over this time last year. Apple made $54.4 billion off its phone business, also up 5% from this time last year. iPad sales continue to decline, however. The company moved 13 million of its slates last quarter, down 19% from a year ago, and it took in $5.5 billion from those sales, a 22% decline. Mac sales more or less held steady at 5.4 million, a 1% increase in units sold, and those sales took in another $7.2 billion for the company.

Apple's services business continues to enjoy healthy growth. All told, that division took in $7.1 billion in revenue, up 18% from this time last year. Meanwhile, the Other Products catch-all scraped up $4 billion, down 8% from this time last year. CEO Tim Cook says the Apple Watch set a revenue record last quarter, but it apparently wasn't enough to buoy the S.S. Other Products.

For its next quarter, Apple expects to take in $51.5 billion to $53.5 billion in revenue and produce gross margins of 38% to 39%.

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    • derFunkenstein
    • 3 years ago

    iTunes, iCloud, and the App Store revenues already dwarf the iPad, and services revenues are about to eclipse the Mac. Apple isn’t a hardware company; it’s a services company with mostly-optional hardware dongles (outside the app store, anyway).

      • End User
      • 3 years ago

      Services driven by hardware sales.

      • tipoo
      • 3 years ago

      Services are still dwarfed by the iPhone. Apple is the iPhone company, that happens to have a few multi billion dollar sub-companies in services/the mac.

    • Anovoca
    • 3 years ago

    All those window nets must have helped their employee turnover rates.

      • chuckula
      • 3 years ago

      Don’t you mean their jump off of rates?

    • bfar
    • 3 years ago

    I reckon folks are beginning to twig that Apple will support your iPhone for 4 years, whereas you’ll be lucky to get a year or two from Samsung and company.

    I ditched Samsung like a hot rock last year in favor of a Nexus device, but it turns out Google were happy to cannibalize that too in order to promote its latest Pixel phone. These guys just never learn – it’s not all about the latest device, its about supporting their brand, including older devices.

    • lycium
    • 3 years ago

    > but it apparently wasn’t enough to buoy the S.S. Other Products.

    lol

    • davidbowser
    • 3 years ago

    So It gets mentioned every once in a while by financial media (and effectively never in the tech media), but quarterly and YoY results for companies that release products on an irregular or non-yearly basis are not indicative of anything without context. What provides context in this case is the quarter revenue from the release of the iPhone 6 in comparison to the 7.

    The iPhone 6 was released in late 2014 in time for the holidays, so Apple had $74.6B revenue and $18B profit in FQ1 2015, with 74.5 million iPhones sold. Apple then had moderate growth in 2016 and then released the 7 in late 2016, which essentially was a modest upgrade on the iPhone 6 (minus the jack).

    [url<]https://www.apple.com/pr/library/2015/01/27Apple-Reports-Record-First-Quarter-Results.html[/url<] Just like the iPhone 5 was "just an upgrade" to the iPhone 4, so it is with the 6 and 7. If Apple behaves according to their plans and history, the iPhone 8 will be something new and different. As a Mac user, I just want to say that they better start making some compelling Macs again. The last great Macs were the rMBP and the vacuum/obelisk/trashcan Mac Pro. I am still rolling with my MBAir 13 until they come up with something that makes it worth an upgrade.

    • Unknown-Error
    • 3 years ago

    Holeee s———t

    😮 😮 😮

    • ronch
    • 3 years ago

    Makes me feel good having an Acer phone. Apple is already frickin rich, while other much smaller brands are struggling. I am all for supporting smaller but still well known players that make products that, while not perfect (and what product is?), still work great and sell for much less.

      • unclesharkey
      • 3 years ago

      Sorry you can’t compare Acers to Apples. ;-P

        • ronch
        • 3 years ago

        Of course, but you can’t deny that Acer also sells stuff for much less, gives you more for your dollar, and they work OK too.

      • K-L-Waster
      • 3 years ago

      I once saw a talking head on a business network claim that investors should buy Dell shares because they were “just like Apple, but cheap.”

    • tipoo
    • 3 years ago

    [url<]https://sixcolors.com/images/content/2017/q1-17-asp-6c.png[/url<] So that's what a 300 dollar MacBook Pro price hike across the board looks like graphed ಠ_ಠ I'm not too negative on the product personally, but the price hike seemed hardly excusable.

      • derFunkenstein
      • 3 years ago

      For a $300 hike I expected more than just an Emoji strip and a fingerprint reader.

        • Growler
        • 3 years ago

        They also took away some ports, I guess. It’s more expensive to ship fewer ports.

          • derFunkenstein
          • 3 years ago

          Well, of course. Now you have to fill in the holes with aluminum.

      • Ninjitsu
      • 3 years ago

      But it has a fruit logo on it, all is excused. It must be worth it!

      • Chrispy_
      • 3 years ago

      Apple have brainwashed an entire demographic into accepting whatever price is on the label. They can just print money if they want to.

        • End User
        • 3 years ago

        Hardly. It is a superior OS/hardware solution for many.

          • derFunkenstein
          • 3 years ago

          Says the guy who just traded in macOS for Windows 10. LOL

            • End User
            • 3 years ago

            LOL

            Please read what I wrote:

            “For many”

            I anticipated your comment before you wrote it.

            • derFunkenstein
            • 3 years ago

            You’re the kind of person (allegedly) that Apple targets, so it can’t be all that great for many

      • hungarianhc
      • 3 years ago

      Your sentiment echoes mine 100%. I had the money set aside, ready to buy the new MacBook Pro after it got updated. I was put off by a few missing features, unsure about the Touch Bar, and the $300 price hike really added insult to injury. Instead I kicked the can down the road… I bought a 2 year old Apple MacBook Pro w/ 1TB of storage, 16 gigs of RAM, etc. It still has a year of Applecare warranty on it. By saving money on a used machine, I figure I won’t own this one was long as my previous model. In 12 to 18 months, I’ll re-evaluate the scene, see what’s going on w/ Dell’s machine, ElementaryOS, ChromeOS, Solus, Ubuntu, macOS, etc, and see where I want to go. I really don’t like windows…

        • tipoo
        • 3 years ago

        Yup, before you could usually play the upgrade game too, reselling your old model and upgrading for only a few hundred if you did it every few years. With the price hike, the 15″ with 512MB storage and the 460 would be $3,619.00, before my 15% tax…The upgrade game somehow became more like 1600. Partly the CADs fault of course, partly the strong USD (one time I can seriously say thanks, Obama! :P), but the price hike and disproportionate price hike in non-USD currencies doesn’t help.

        Not sure what I want to do now. Maybe still sell it, get a laptop more like half that price, and put the change towards the desktop I’ve been wanting to build apart from the shite CAD.

    • tipoo
    • 3 years ago

    Only 1% uptick in Mac sales after a long awaited refresh to the rMBP, which had been on GCN 1.0 GPUs at best months ago. Hm. On one hand it outsold every single premium laptop on the market by a long shot as a single model, on the other it’s interesting that a brand new model only kept demand steady. Maybe that’s normal? I guess multi thousand dollar machines don’t follow the same hype and taper off model as new phones.

    Edit: Yeah, it’s pretty low compared to past launches. The late 2013 model boosted overall Mac sales in its debut quarter by 19 percent year-over-year, the mid 2014 variant pushed sales by 21 percent, and even the recent 13- and 15-inch 2015 models both saw increases of around 10 percent in Mac sales in the separate quarters they debuted in.

      • derFunkenstein
      • 3 years ago

      I take it as the Apple faithful were unimpressed with the combination of specific hardware updates and the resulting prices.

      • End User
      • 3 years ago

      I’m impressed that Mac sales recovered as well as they did (4th highest quarter over the past 5+ years:

      [url<]https://sixcolors.com/post/2017/01/apples-record-quarter-by-the-numbers/)[/url<]

      • blastdoor
      • 3 years ago

      I’d say it could have been worse, but should have been better.

      What we are seeing here is:

      1. The MacOS guys are doing their part. Regular updates every year make the product better.
      2. Build quality of aging hardware remains high.
      3. Demand is being suppressed because of lack of regular hardware updates.

      One of the main benefits of Apple switching to Intel was to remove hardware specs as a liability that macOS had to overcome. Now Apple has reintroduced that liability with multiple unforced errors.

      • End User
      • 3 years ago

      The new MacBook Pros are apparently supply constrained.

        • derFunkenstein
        • 3 years ago

        They’re all “in stock” on Apple’s site as long as you don’t customize them.

          • End User
          • 3 years ago

          AMD seems to have issues supplying the upgraded units. 1-2 week delay.

            • derFunkenstein
            • 3 years ago

            It could also just be that upgraded units aren’t selling and Apple is only building them to order.

            • tipoo
            • 3 years ago

            My impression could well be skewed by hanging around enthusiast sites, but the 460 seemed like a no brainer for a lot of people putting this into video production use or doing some light gaming. Near double the execution power, double the VRAM as a bonus.

            Granted I expect the base model will of course be the biggest seller to your average person with 3 grand to blow on a laptop, but I’m guessing it goes 450 > 460 >>> 455 in sales.

            • derFunkenstein
            • 3 years ago

            460 does seem like a no brainer if you’re making money on video production, but I think we (myself included) tend to overestimate how many people are actually doing that since the internet is “full” of them.

            • tipoo
            • 3 years ago

            This is also true, lol. A lot of the sales must just come from decently well off people who don’t need near that power, who think a gee pee you is a character from star wars.

    • chuckula
    • 3 years ago

    [quote<]Mac sales more or less held steady at 5.4 million, a 1% increase in units sold, and those sales took in another $7.2 billion for the company.[/quote<] Well the PC is dying. [quote<]The company moved 13 million of its slates last quarter, down 19% from a year ago, and it took in $5.5 billion from those sales, a 22% decline.[/quote<] And the tablet is already dead!

      • End User
      • 3 years ago

      I classify the tablet as a PC. Apple just had a $12.7 billion in revenue PC quarter.

        • chuckula
        • 3 years ago

        I classify the iPhone as a PC.
        The PC RULES FOREVER!

          • derFunkenstein
          • 3 years ago

          I classify the tablet as a really big phone. The iPhone market barely budged.

          • End User
          • 3 years ago

          You are right. The phone is a PC. Apple just brought in PC revenue of $47.6 billion.

          • tipoo
          • 3 years ago

          Where PC stands for Pocket Computer!

        • flip-mode
        • 3 years ago

        That’s great! How man publications and analysts are using your classification?

          • End User
          • 3 years ago

          Phones and tablets have replaced laptops and desktops for many consumers. Lets be realistic about it and classify phones and tablets accordingly.

    • adisor19
    • 3 years ago

    The main thing I get from this : Apple keeps making money.

    Adi

      • UberGerbil
      • 3 years ago

      And you keep signing your posts. For no apparent reason.

        • crystall
        • 3 years ago

        That signature reminds me of an obnoxious poster from the ancient (and venerable) forum of Ace’s Hardware. I hope he’s not the same person.

        • Ninjitsu
        • 3 years ago

        It doesn’t [i<]really[/i<] matter though.

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