Published: Thu, May 03, 2018
Research | By Wilma Wheeler

Apple Does It Again With Q2 Earnings

Apple Does It Again With Q2 Earnings

Apple reported its second quarter 2018 financial results today, posting quarterly revenue of $61.1 billion on sales of 52.2 million iPhones, 9.113 million iPads, 4.078 million Macs, and $9.190 billion in services. Speaking on a conference call to discuss Apple's results, Cook said Apple is seeing more gains from its iPhone X, in particular, and that the $999 smartphone was the best-selling iPhone during every week of Apple's second quarter. "We also grew revenue in all of our geographic segments, with over 20 per cent growth in greater China and Japan". That's good for a revenue increase of 16% over 2017 and a massive earnings-per-share boost of 30%.

However it seems that Apple's latest earnings report paints a very different picture where according to Apple's CEO Tim Cook, the iPhone X is doing very well. Service revenue also increased 31 percent to United States dollars 9.19 billion, and iPad revenues rose 6 percent to USD 4.11 billion, on shipments up 2 percent to 9.11 million units.

The share repurchases in the march quarter drove Apple's cash net of debt down slightly to $US145 billion.

As for its outlook, Apple is guiding for fiscal third-quarter revenue of between US$51.5bn and US$53.5bn - towards the higher end of the US$51.6bn Wall Street number crunchers had penciled in. The decision to release three new iPhone models at once, along with the X's steep price, raised fears that consumers might not opt for Apple's top-of-the-line iPhone.

"Since we split the line with the launch of iPhone 6 and 6 Plus back in 2014, this is the first cycle that we've ever had where the top-of-the-line iPhone model has also been the most popular", Cook said.

Apple showed that even weaker iPhone sales can't slow the technology giant down.

Daniel Ives, an analyst with GBH Insights, wrote in an investor note last week that Wall Street was in "full panic mode" over iPhone sales ahead of Apple's earnings report. There's obviously huge opportunities for us and we have an extremely low share in that market overall. Apple also increased its quarterly dividend to 73 cents a share from 63 cents.

Reflecting the approved increase, the Board has declared a cash dividend of $0.73 per share of Apple's common stock payable on May 17, 2018 to shareholders of record as of the close of business on May 14, 2018. Analysts now project revenues of $52.04 billion.

The company on Tuesday announced fiscal second-quarter revenues of $61.1bn, beating analyst expectations and representing a 15 per cent year-on-year increase.

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