Apple enjoys its fourth straight quarter of revenue growth in Q2 2018


Apple posted its financial results for the second quarter of 2018 (or the third quarter of its fiscal 2018) today. The company took in $53.3 billion in revenue, up 17% year-on-year, and made $12.6 billion in operating income, also up about 17% year-on-year. Net income was $11.5 billion, up 32.1% year-on-year, and gross margin was 38.3%, down about 0.2 percentage points.

iPhone shipments totaled 41.3 million, or an increase of 1% on the year. Despite the more-or-less unchanged unit shipments, Apple's handsets brought in $29.9 billion in revenue, or an impressive 20% increase from a year ago. The fact that Cupertino is making more revenue off the same number of units shipped suggests the ultra-high-end iPhone X is still selling well.

Apple moved 11.5 million iPads last quarter, up 1% on the year. The company's family of slates brought in $4.7 billion in revenue, down 5% on the year, suggesting the latest entry-level iPad's $329 starting price might be eating into the iPad's overall slice of the revenue pie a bit.

The company shipped 3.7 million Macs last quarter, down 13% on the year. That bite out of the proverbial apple was stilll good for $5.3 billion in revenue, down 5% on the year. Apple just released new MacBook Pros with a shot of Coffee Lake inside, and after some early teething pains, reviewers seem largely satisfied with the performance of those new machines. Next quarter might prove better for the Mac as a result.

The Other Products division, home to the Apple Watch, AirPods, and the HomePod, took in $3.7 billion in revenue, up a whopping 37% year-on-year. Finally, Apple's Services revenue of $9.5 billion was good for a 31% increase year-on-year.

For the third quarter of 2018 (its fiscal fourth quarter), Apple expects revenue between $60 billion and $62 billion and gross margins between 38% and 38.5%. That revenue figure would represent year-on-year growth of about 14%–18%.

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