Apple’s Services revenue, adjusted for this and that

The Services growth chart for Q1 2018 makes more sense when you subtract 2017’s extra week and the $640 million Apple found under the couch.

Bottom line: Services actually grew 27% (not 18%) last quarter and 24% (not 34%) the quarter before.

Don’t see the three-part interactive chart? Click here.

My take: Not a big thing, but it does take some of the air out of Q4’s extraordinary year-over-year growth.

See also: Look what Apple found under the couch


  1. Gianfranco Pedron said:
    Thank you for doing the math Philip.

    Amazon investors on the other hand aren’t so lucky. Here are some excerpts from a CNBC report on earnings:

    “Amazon blew past street estimates for its fourth quarter earnings, reflecting strong holiday sales and growth in its cloud business.
    Amazon’s stock went up more than 6 percent in after hours trading.
    Here are the most important numbers:
    Revenue: $60.5 billion vs. $59.83 billion, as estimated, according to Thomson Reuters
    EPS: $3.75 per share* …”

    “Net income was $1.9 billion, more than double from the same period of last year and the highest in company history. Amazon noted that the fourth quarter earnings includes a tax benefit of roughly $789 million due to the change in U.S. tax code.”

    Remember the asterisk after the EPS number?
    ” *Correction: Amazon’s EPS number is not comparable against earnings estimates because of the tax benefits the company saw due to changes in the U.S. tax code.”

    Bah, details.

    February 4, 2018
  2. Gregg Thurman said:
    Everybody’s Net Income compares are going to be favorable through 2018 because of the changes in tax rates.

    February 4, 2018
    • Gianfranco Pedron said:
      I don’t recall Apple mentioning any such adjustment during their Q1 earnings call.

      Did I nod off and miss something?

      February 4, 2018
  3. Fred Stein said:
    The data shows Apple has a $30B annually Services business growing at 20% annually. If it were any other company, analysts would shout about how great this is.

    February 4, 2018
  4. Doug Montgomery said:
    Coverage fail story. TC & Luca mentioned 16x on the CC that the compare was 13 weeks compared to 14 weeks year ago and nobody listened – that story is MIA.

    February 4, 2018

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