×
You will be redirected back to your article in seconds

Apple Posts Record Revenue for 2017 Holiday Quarter, Cites Strong iPhone X Sales

Apple once again beat Wall Street expectations in announcing record quarterly results — fueled by the highest revenue from iPhone sales in its history, although it sold nearly 1 million fewer smartphones than in the year-earlier period.

For the company’s fiscal first quarter of 2018 ended Dec. 30, Apple reported revenue of $88.3 billion, up 13% year over year. Net income was $20 billion, with earnings per diluted share of $3.89, up 16% and also an all-time record.

The iPhone X “surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” Apple CEO Tim Cook said in announcing the results.

For the 2017 holiday quarter, analysts had forecast Apple revenue of $87.06 billion and earnings per share of $3.86.

The iPhone X is the company’s most expensive smartphone ever, priced starting at $999 with 64 gigabytes of storage, with a new facial-recognition ID feature, an edge-to-edge display and a souped-up camera. The device (pronounced “iPhone ten”) actually began shipping in late October, ahead of the official Nov. 3 retail launch.

For the December quarter, Apple shipped 77.3 million iPhone smartphones worldwide, representing $61.6 billion in sales. Unit sales of iPhones were down 1% compared with 78.3 million in the year-earlier quarter, while revenue rose 13%. CFO Luca Maestri noted on a call with analysts that Apple’s fiscal Q1 2018 was one week shorter than the 2016 holiday quarter. Some analysts had expected Apple, which doesn’t break out sales data by iPhone model, to top 80 million iPhone unit shipments.

Meanwhile, Apple issued guidance for its fiscal second-quarter 2018 of revenue between $60 billion and $62 billion — below Wall Street consensus estimates of around $65.7 billion for the current quarter.

According to Cook, Apple in January hit an active installed base of 1.3 billion devices, up 30% over two years. The milestone “is a testament to the popularity of our products and the loyalty and satisfaction of our customers,” he said.

Apple’s services revenue also saw a healthy uptick in the most recent quarter, rising 18% to $8.5 billion. That segment includes iTunes and App Store digital content and services, Apple Music, AppleCare, Apple Pay, licensing and other services. On the earnings call, Cook said Apple Music hit all-time highs for revenue and subscribers in the December quarter but didn’t provide specifics.

Cook also called out Apple’s launch next week of the HomePod wireless speaker. “We’re very happy with the initial response from reviewers,” he said.

Last month, Apple announced it would pay $38 billion in U.S. taxes to repatriate some portion of the cash it holds overseas. As of Dec. 30, 2017, Apple held $285 billion in cash with a total of $163 billion net of debt. Maestri told analysts Thursday that the company expects to be “net-cash neutral over time” and that it would discuss capital-allocation plans following the March quarter.

More Digital

  • The Frontier

    Conecta Fiction: Project Pitches Prizes Passed Out in Pamplona

    On Wednesday evening the Spanish city of Pamplona was overrun, not by bulls, but by hopeful TV creators who had spent the early week pitching their projects at Conecta Fiction, and who anxiously waited to find out the titles which would take home silverware. Meanwhile, “Monzón,” a Disney-Pampa-Incaa production portraying the tragic violence of Argentine [...]

  • YouTube logo

    Why Splitting Up YouTube Is a Terrible Idea

    Facing mounting pressure over failures to protect children from inappropriate content, Google is reportedly considering a number of changes to its video sharing site YouTube. The Wall Street Journal reported Wednesday that one of the ideas circulated internally was to effectively split up YouTube, and spin out all children’s content into the existing YouTube Kids [...]

  • Niantic's Harry Potter: Wizards Unite Game

    ‘Harry Potter: Wizards Unite’ to Launch This Week

    “Pokemon Go” maker Niantic is getting ready to launch its next big game: “Harry Potter: Wizards Unite” is set to launch in June 21, the company revealed in a tweet this week. The worldwide launch of Harry Potter: Wizards Unite begins this Friday, June 21! Keep your eyes peeled and wand ready for more information [...]

  • google podcast creator program

    Google, PRX Unveil Second Slate of Their Podcasts Creator Program (EXCLUSIVE)

    Roughly a year after first unveiling its podcasts creator program, Google is renewing its commitment to train budding podcasters. Together with public radio and podcast distributor PRX, Google has chosen 6 podcasters from around the world to participate in the next round of the creator program. The podcasts included in the second cohort are “37 [...]

  • Camila Cabello

    Camila Cabello Reveals Podcast Obsessions, Teases New Album at Cannes Lions

    Camila Cabello was the featured speaker at a Tuesday afternoon panel at Cannes Lions, the annual gathering of marketing, design and entertainment professionals in the south of France. Joined by Spotify chief content officer Dawn Ostroff, the talk, moderated by Variety editor Shirley Halperin, was centered around the theme of the golden age of sound [...]

  • Meg Whitman and Jeffrey Katzenberg

    Quibi Has Already Booked $100 Million in Ad Sales, Jeffrey Katzenberg and Meg Whitman Say

    Quibi, the ambitious short-form video venture from Jeffrey Katzenberg and CEO Meg Whitman, has sold $100 million in upfront ad inventory with six advertisers ahead of its April 2020 debut. Advertisers that have committed ad spending to Quibi include Google, Procter & Gamble, PepsiCo, Walmart, Progressive and AB InBev, according to the company. The $100 [...]

  • China's iQIYI Signs Content, Channel Pact

    China's iQIYI Signs Content, Channel Pact With Malaysia's Astro

    Astro Malaysia, Malaysia’s leading pay-TV operator, has struck a strategic agreement with Chinese streaming platform iQIYI. Astro obtains the exclusive rights to deliver iQIYI content on TV, on-demand and via OTT in Malaysia. It will launch the first iQIYI-branded channel comprising iQIYI’s extensive slate of original content from drama to variety shows and movies. Astro [...]

More From Our Brands

Access exclusive content