Apple’s surprisingly strong Q2 2018 in five easy charts

The ups and downs of Apple’s revenue, earnings, iPhone sales, services and revenue from greater China.

From the press release:

Apple® today announced financial results for its fiscal 2018 second quarter ended March 31, 2018. The Company posted quarterly revenue of $61.1 billion, an increase of 16 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.73, up 30 percent. International sales accounted for 65 percent of the quarter’s revenue.

“We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables,” said Tim Cook, Apple’s CEO. “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. We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan.”

The year-over-year-growth graphs in the charts below tell the story. Revenue up 15%, EPS up 30%, Services up 30%, Greater China up 20%.

iPhone unit sales, as expected, grew weakly—only 3%. But iPhone ASPs grew 11% on the strength of iPhone X sales, sales that many analysts had all-but written off.

Apple shares, which closed up 2.3%, popped another 3.7% after hours.

Below: The five charts. Click the second column to see year-over-year growth. (Not seeing the charts? Try the website.)

19 Comments

  1. Michael Thompson said:

    Apple repurchased a RECORD $23.5 billion worth of stock in the recently ended quarter. All were open market repurchases. We now have under 5 Billion shares outstanding. The new figure is 4.943 billion diluted shares. Between 25-26% of the outstanding shares at its peak have now been repurchased.

    http://files.shareholder.com/downloads/AAPL/2758195560x0x840254/7137D28C-2E6E-4406-8435-ADAB52BB6F4C/Apple_Return_of_Capital_and_Cash_Position_Q118.pdf

    There is still $10 billion of available buybacks under the old $210 billion program. With the additional $100 billion, Apple will be way over 200 before the end of the year.

    0
    May 1, 2018
  2. David Emery said:

    Dear Wall St Analysts:
    Bite me!

    🙂

    9
    May 1, 2018
  3. Fred Stein said:

    Nice. I’ll sleep better.

    Philips’ Service chart, YoY growth view: In FY ’16 while the market was chicken-little-ing about iPhone units, the giant services segment was waking up.

    Going way out on a limb, I’ll predict similar for Apple in Health Care. Tim revealed no detail about plans. Surely in this $16T global industry, Apple can find a few 10’s of $B’s of new revenue. That’s a big comfort for those who worry about iPhone replacement cycles.

    Tim rightfully bragged about Apple Pay’s growth, while remaining mum on actual revenue contribution. This is another long-term sleeper, even doubling annually.

    5
    May 1, 2018
  4. Fred Stein said:

    If I read this correctly Luca said they bought 137M shares plus retired 5.7M shares for net reduction of 143M share or about 2.8%.

    1
    May 1, 2018
    • Michael Thompson said:

      Yes, Apple bought back $23.5 billion worth of stock in the quarter. All were open market purchases. The diluted share count is 4.943 billion.

      0
      May 1, 2018
  5. Ken Cheng said:

    Everything seems to be trending in the right direction.

    0
    May 1, 2018
  6. Doug Montgomery said:

    CNBC should be forced to refer to the winner of PED’s Earnings Smack Down as the #1 Apple Analyst for the next 90 days.

    2
    May 1, 2018
  7. David Drinkwater said:

    I’m totally standing by my readily documentable previous claims that a late, late, late Chinese New Year moved (or at least made available) a lot more revenue in/to Q2.

    Analysts are bozos.

    1
    May 2, 2018

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