Today, Apple announced its first quarter results:
The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.
Revenue
This is an all-time quarterly record; up 2% over last year. Tim Cook and Apple made a point that if currencies around the world were stable, that growth would have been 8%.
Two thirds of Apple’s revenue was generated outside of the United States, making these fluctuations’s impact felt more then ever before.
iPhone
The company sold 74.7 million iPhones, an all-time high for any quarter, edging out Q1 2015, when 74.5 million were sold:
That’s 34,000 iPhone sold every hour of the quarter. Holy moly.
Tim Cooks says that Apple’s customer satisfaction for the iPhone 6S and 6S Plus is 99%, with unparalleled customer loyalty. Tim Cook “blown away” by the number of Android switchers Apple saw this quarter.
iPad
The iPad had the best quarter its had in a year, but at 16.1 million, was still 5.3 million units behind the same quarter a year ago:
The iPad Pro doesn’t seem to have made a big difference this holiday season. Jason Snell tweeted:
The iPad results here are not great. Year over year shrinkage continues, and average selling price went up only $6 despite iPad Pro
I think at this point, we can all agree the iPad may be in trouble. That said, the iPad has 85% of the US tablet marketshare, and 67% of the US commercial, enterprise and education market.
Mac
The Mac was down from the previous quarter, selling 5.3 million units. The Mac is less likely to see big gains due to the holidays, and this number is more or less in line with that the product line has been doing, so it’s not super interesting, but hey, graphs are fun:
The Mac saw big growth in China this year.
Miscellaneous
- Apple is reporting an active installed base of 1 billion “iPhone, iPad, Mac, iPod touch, Apple TV, and Apple Watch devices that have been engaged with our services within the past 90 days.”
- Apple says there are 3,600 Apple TV apps on the App Store now.
- Apple Watch is now in 48 countries. The company says Q1 was the best quarter yet for the Watch, but no numbers were shared.
- Gross margin was 40.1%, higher than Apple had predicted.
- Apple has $215.7 billion in cash; 90% of that is outside of the United States.
- There is a lot of discussion about India being a big opportunity for Apple.
- Gene Munster Apple asked about VR. Tim Cook replied saying, “I don’t think VR is a niche, it’s really cool and has some interesting applications.”