Apple posted revenue of $52.6 billion (+12 percent) fuelled by international sales that accounted for 62 percent of the quarter’s revenue in its fourth quarter ended September 30, 2017.
Apple achieved revenue of $28.846 billion (+2 percent) from iPhones by selling 46,677 million (+3 percent) units in Q4.
Apple sold 5.386 million (+10 percent) Mac computers for clocking a revenue of $7.170 billion (+25 percent).
Apple generated $4.831 billion (+14 percent) from iPad sales by selling 10.326 million units (+11 percent).
Service business of Apple contributed $8.5 billion, growing at 34 percent.
This is the first double digit growth for Apple in two years.
Apple generated $23.099 billion (+14 percent) from Americas, $13.009 billion (+20 percent) from Europe, $9.801 billion (+12 percent) from Greater China, $3,858 billion (–11 percent) from Japan and $2.812 billion (+5 percent) from Rest of Asia Pacific including India.
Cupertino, California-based Apple launched three new devices at their fall event, as the new iPhone X joined the iPhone 8 and 8 Plus in the Apple line up.
Apple’s newest iPhones helped drive third-quarter shipments of 46.7 million units, up 2.6 percent from the 45.5 million units last year. Older iPhones such as the SE, 6S, and 7 received price cuts late in the quarter which will balance the iPhone portfolio across all price tiers for the holiday quarter, according to IDC.
With the newly designed iPhone X just launching this quarter, demand for the new iPhone 8 and 8 Plus models was timid compared to previous launches.
The fourth quarter from Apple could be the first quarter with something for everyone as the new X will lead at the high-end and as older discounted models will offer something for everyone in between.
“Apple grew a below-average 3 percent annually and shipped 46.7 million smartphones for 12 percent market share worldwide in Q3 2017, holding steady from the same level a year ago. Despite a delayed launch of the flagship iPhone X model, the new iPhone 8 portfolio was relatively well received in major countries such as Germany and China,” said Neil Mawston, executive director at Strategy Analytics.
“With new products including iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K joining our product lineup, we’re looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device,” said said Tim Cook, Apple’s CEO.
Apple said it is expecting quarterly revenue of $84 billion — $87 billion with gross margin of 38 percent — 38.5 percent and operating expenses of $7.65 billion — $7.75 billion for its fiscal 2018 first quarter.
For the first time in two years, Apple reported double-digit revenue growth in 3Q17, 12.2 percent year-to-year, to a record for the third calendar quarter of $52.6B .
“Apple performed well in segments that have been problematic, like China and iPad. iPhone sales in mainland China grew at a double-digit rate; the new iPad drove double-digit unit growth for the second consecutive quarter in a declining market. Mac unit sales up 10.2 percent, while Mac revenue was up 24.9 percent, illustrating the success of Apple’s price increases,” said Ezra Gottheil of TBR.
Growth for services was at a run rate of 24 percent. Apple Watch sales rose more than 50 percent year-to-year, for three consecutive quarters. These product lines diversify Apple’s revenue streams, and do not face the market saturation problems of smartphones, PCs, and tablets.