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

9 Comments

  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.

    1
    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.

    0
    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?

      0
      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.

    2
    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.

    3
    February 4, 2018

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