Apple quarterly results better than expected, sees Q4 sales up slightly

Nieuws Mobiel Wereld 2 NOV 2018
Apple quarterly results better than expected, sees Q4 sales up slightly

Apple reported better-than-expected sales growth for its fiscal fourth quarter to September. Revenues rose 20 percent year-on-year to USD 62.9 billion, and quarterly earnings improved 41 percent to USD 2.91 per share. For the current quarter to December, Apple forecast revenues of USD 89-93 billion, up from USD 88.3 billion a year ago. 

Apple's growth in the past quarter came largely from the increase in prices in the latest iPhones, as well as continued growth in services. Unit shipments of the iPhone were unchanged year-on-year at 46.89 million, but revenues from the iPhone rose 29 percent to USD 37.19 billion. Service revenues were up 17 percent to USD 9.98 billion. 

CEO Tim Cook said it was the strongest revenues and earnings in Apple's history during the quarter. The company also shipped its 2 billionth iOS device and celebrated the 10th anniversary of the App Store. The quarter was a record for the period in iPhones and wearables revenue and all-time quarterly records for Services and Mac.

'Other' products growing, no more unit sales reporting

The company's 'other' products, which include the Apple Watch, TV and HomePod, reported revenues up 31 percent year-on-year to USD 4.23 billion. Mac shipments were down 2 percent year-on-year but revenues rose 3 percent to USD 7.41 billion. 

On the conference call after the results, Apple announced that it would no longer report unit sales for its products going forward. CFO Luca Maestri said the number of units Apple sells each quarter is "not necessarily representative of the underlying strength of our business", especially given the broader range of products at the company and growing services business. He noted that most other smartphone makers do not report unit sales either. 

Sales outside the US reached 61 percent of Apple's total revenue. Japan was the strongest market in the quarter, with revenue up 34 percent to USD 5.14 billion, while greater China grew 16 percent to USD 11.41 billion. 

Apple left its dividend unchanged at USD 0.73 per share. Including dividends and share buybacks, the company returned a total of USD 23 billion to shareholders in the past quarter, after generating operating cash flow of USD 19.5 billion. 

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