Despite all concerns over the slowing sales of the iPhone X, Apple has announced 2018 first quarter financial results posting a quarterly revenue of $88.3 billion, an increase of 13 per cent from the corresponding quarter last year. This is also an all-time record along with the quarterly earnings per diluted share of $3.89, up 16 per cent.
Apple CEO Tim Cook called it the biggest quarter in Apple’s history “with broad-based growth that included the highest revenue ever from a new iPhone lineup”. He said the iPhone X has surpassed expectations and has been Apple’s 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 per cent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers.” International sales accounted for 65 per cent of the quarter’s revenue.
He later told journalists and analysts in an earnings call that the iPhone X was the “best-selling smartphone in the world in the December quarter” according to Canalys. He said the revenue for the new iPhone was the highest of any lineup in their history, driving total Apple revenue above its guidance range.
In the earnings call, Apple CFO Luca Maestri said the company sold 77.3 million iPhones, “the highest number ever for a 13-week quarter”. This he said was also because the average weekly iPhone sales were up 6 per cent compared to December quarter last year with growth in all region. “We established all-time iPhone revenue record in nearly every market with double-digit growth in all of our geographic segments,” he said.
“Thanks to great operational and business performance, we achieved all-time record profitability during the quarter, with EPS up 16 per cent,” said, Apple’s CFO. “Cash flow from operations was very strong at $28.3 billion, and we returned $14.5 billion to investors through our capital return program.” For the coming year Apple is expecting revenue between $60 billion and $62 billion, gross margin between 38 per cent and 38.5 per cent and operating expenses between $7.6 billion and $7.7 billion.