Today Apple announced financial results for its fiscal 2018 first quarter ended December 30, 2017. The Company posted quarterly revenue of $88.3 billion, an increase of 13 percent from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $3.89, up 16 percent, also an all-time record. International sales accounted for 65 percent of the quarter's revenue. Apple had forecasted revenue between $84 billion and $87 billion.
"We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November," said Tim Cook, Apple's CEO. "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 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers."
"Thanks to great operational and business performance, we achieved all-time record profitability during the quarter, with EPS up 16 percent," said Luca Maestri, 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."
While Bloomberg reports that Apple's iPhone sales dropped by 1%, you need the perspective of China, the second largest smartphone market in the world, having suffered their first drop in shipments since 2009.
The drop was partly due to China having one of its worst year-on-year performances in Q4 2017, with shipments plummeting by over 14% to just under 113 million units.
In context, Apple falling only 1% is of no consequence considering that iPhone X was the highest priced premium smartphone in the market. Apple's revenues in this case is what counts and Apple blew it away.
On Monday, Patently Apple posted a report noting that Apple's iPhone X was the #1 Smartphone in Q4," so it's no wonder that Apple had such a great quarter.
Apple is providing the following guidance for its fiscal 2018 second quarter:
revenue between $60 billion and $62 billion
gross margin between 38 percent and 38.5 percent
operating expenses between $7.6 billion and $7.7 billion
other income/(expense) of $300 million
tax rate of approximately 15 percent
Apple's board of directors has declared a cash dividend of $0.63 per share of the Company's common stock. The dividend is payable on February 15, 2018 to shareholders of record as of the close of business on February 12, 2018.
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