Apple announced its second quarter results for 2018 for the period ending March 2018. Apple’s revenue stood at $61.1 billion, which was a 16 per cent increase from the year-ago quarter. With Apple’s results all eyes were on the performance of the iPhone, and the iPhone X in particular. The company has managed to beat Wall Street’s expectations on the iPhone X front, according to the results. The flagship iPhone model did well for the company, according to Apple CEO Tim Cook’s statements. Here’s a look at the key numbers and trends from Apple’s Q2 2018 results.
Apple iPhone sales, iPad and Mac sales from Q2, 2018
According to Apple’s data sheet, the company shipped 52.2 million iPhone units in Q2, 2018 which was a sequential decline from the 77.3 million iPhones shipped in the previous quarter. However, Apple beat its second quarter performance from last year, when it has shipped 50.7 million iPhones. Apple iPhone revenue rose 14 per cent on an yearly basis, though on a quarter-to-quarter basis the revenue was down 38 per cent for Apple’s iPhones.
Coming to the Apple iPad, the company shipped around 9.1 million units, which was an yearly increase from 8.9 million shipments of Q2, 2017. However, Apple iPad’s revenue rose by 6 per cent on an yearly basis, though it witnessed a 30 per cent sequential decline. Macs did not have a great second quarter with Apple shipping over 4.07 million units, which was a negative 3 per cent growth on an yearly basis.
Coming to services, Apple’s revenue was up 31 per cent in this segment and wearables were up almost 50 per cent. But Apple has not yet given out separate shipment numbers on units of wearables, including Apple Watch which were shipped in the quarter.
Apple iPhone X is a best seller, and the $1000 price was not a problem
Apple CEO Tim Cook said, “Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter.” The iPhone X seems to be a winner for Apple, despite doubts about the price and performance.
According to Reuters, the average selling prices (ASPs) for iPhones were $728, which is more than 10 per cent from the ASP of $655 in 2017. This indicates, the Apple iPhone X and its $999 price helped boost prices for Apple. Tim Cook also revealed during the earnings calls that iPhone gained in share during the quarter based on research firm IDC’s data estimate.
Cook added in the call, “Since we split the line with the launch of iPhone 6 and 6 Plus in 2014, this is the first cycle in which the top of the line iPhone model has also been the most popular,” indicating that the Apple iPhone X had no trouble in the quarter. The Apple CEO was also asked about the price of the iPhone X and whether this was sustainable. He said the ASP growth was “mainly driven by iPhone X,” indicating the $1000 price point had worked in the company’s favour. Cook also said this was the most popular smartphone in all of China for the quarter and has done well in the market.
Apple’s services are growing
Apple revealed that services revenue crossed $9 billion for the first time. Paid subscriptions surpassed 270 million, across services, which is an increase from the 100 million in 2017. Also the Apple Watch, Beats and AirPods business grew almost 50 per cent yearly, according to the company. Apple Watch had double digits yearly growth.
Apple on privacy and consumer data protection
Tim Cook said during in the earnings call that Apple is encrypting user data and keeps most of the information on the device so the user is in control. The statement is important in light of the data leaks being revealed at Facebook. “We also collect much less overall than others do….You’re not our product. And so that’s how we look at that,” he added.
Apple on India investments
Apple CEO Tim Cook again reiterated that India is an important market for them and the company set a new first-half record in the market. He pointed out that India is the third largest smartphone market in the world. “We’re putting a lot of energy there and working with the carriers in that market, and they’re investing enormously on the LTE networks,” he added.