As expected, Apple yesterday released the financial results for its fourth fiscal quarter of 2018 which were slightly higher than expected by the company. Revenue in the period was $ 62.9 billion (20% more than in the same period last year), with net profit of $ 14.1 billion (+ 32%) and diluted earnings of $ 2.91 (+ 41%). International sales comprised 61% of all quarterly sales.
Sales of iPhones were stable (neither increased nor decreased), totaling 46.9 million units and generating 29% (!) more revenue than in the same period a year ago, reaching $ 37.2 billion. Sales of iPads cost 6%, reaching 9.7 million of units, which generated $ 4.1 billion (-15%) for the company. The Macs declined by 2% (5.3 million units sold), generating revenue of $ 7.4 billion (3% more). The category Services, in turn, hit the $ 10 billion (an increase of 17%), while the category Other products (which includes Apple Watch, Apple TV, AirPods, Beats headphones, among other things) earned significant revenue from $ 4.2 billion (an increase of 31%)!
As usual, the CEO Tim Cook and the CFO Luca Maestri held an audio conference to announce the results and comment a little on the company's performance in the last period and the projection for what is yet to come. In this event, whether during the speeches of the executives or in the question and answer session with analysts / journalists, they always paint interesting information. And we, of course, follow everything closely to bring you the highlights of Apple's last quarter. ?
Less transparency and reorganization of categories
Before, however, it is worth highlighting an important change that will be implemented by Apple already in the next quarter. At the conference, Maestri informed that the company do not disclose more detailed numbers of units sold of iPhones, iPads and Macs because "sales of units in the 90-day period are not necessarily an indicator of the underlying strength of the company's business".
In addition, the ?Other Products? category will be renamed ?Wearables, Home and Accessories? (better reflecting the offer of products that are listed, such as Apple Watch, Apple TV, HomePod, AirPods, Beats, iPod touch, accessories, etc.).
- It was a record fiscal year for the company; specifically speaking of the fourth quarter, it was the best that Apple has ever had, growing 10% or more in all regions where the company operates.
- Apple broke revenue records in almost every market, with very strong growth (25% or more) in Germany, South Korea, Italy, Japan, Sweden and Switzerland.
- Ma generated $ 19.5 billion in operating cash flow and returned more than $ 23 billion to shareholders in dividends and share buybacks in the September quarter bringing the total capital returned in fiscal 2018 to almost $ 90 billion.
- Apple ended the quarter with $ 237.1 billion in cash.
- Over 5,000 colleges (including community) and technical institutions are using the free curriculum Everyone Can Code (Programming for All) from Apple.
- More than 350 schools are working with the curriculum Everyone Can Create (Creativity for All) a collection of free tools and project guides to unleash students' creativity with the help of the iPad.
- Cook recalled that 100% of the company's global operations are now driven by renewable energy.
- Apple is also making great strides in its supply chain, for example with the new MacBooks Air and Macs mini, which have their housings made from 100% recycled aluminum (a new alloy created by Apple).
- In total, 450 airlines (47 of the 50 largest) around the world loved iOS devices "to fly safer and provide better customer experiences".
- During the quarter, Apple sold its 2 billion iGadget!
- Apple's annual growth was equivalent to that of a company listed on the Fortune 100.
- Apple's shares ended the fiscal year with a 41% increase over the previous year.
- Revenues from sales of iPhones hit a record high in the quarter, driven by continued demand for iPhones 8, 8 Plus and X and the launch of iPhones XS and XS Max.
- It is important to note that the figures for the fourth fiscal quarter (which ended on September 29) took only a little of the beginning of sales for the iPhones XS and XS Max, but not for the XR (which was launched in October).
- The iPhone ASP jumped to $ 793 (the highest figure ever recorded).
- The iPhone has grown by 20% or more in several markets, including Australia, Chile, Japan, Norway, New Zealand, Vietnam and more.
- Combined, the satisfaction rates of the iPhones 8, 8 Plus and X according to the company 451 Research were 98%.
- In addition, 80% of business owners plan to buy iPhones according to the same survey.
- Sales of 9.7 million units ensured iPad's shareholding gains in almost all markets (Latin America, India, Japan, etc.) based on the most recent IDC estimates.
- The active installed base of the iPad reached a new record.
- According to the NPD, the iPad had a 68% share of the American tablet market in the quarter, well above the 54% of the previous year.
- 451 Research indicated that the tablet has a 96% satisfaction rate (iPad and iPad Pro).
- 74% of companies surveyed plan to buy the iPad.
- 9 of the top 10 global retailers use iPads for interactions with customers and employees.
- The revenue generated from Mac sales hit a new historic record (not just for the quarter, but for all time).
- The record performance can be linked to the new MacBooks Pro, launched in July, and the season back to school in the northern hemisphere.
- Responses to the new MacBooks Pro are very positive, with strong revenue growth (10% or more) in markets such as Africa, Latin America, Central / Eastern Europe, India and the Middle East.
- Apple today has the largest active Mac installation base of all time.
- The revenue generated by Ma's services set a new historical record (not just for the quarter, but for all time).
- In an annual fiscal comparison, the category grew 27% if a favorable adjustment of US $ 640 million made a year ago is discounted.
- According to Maestri, Apple Music, iCloud storage and AppleCare broke records in the period.
- The performance of Apple Pay, in Cook's words, was exceptional. It is by far the # 1 contactless payment service in the world. The volume of transactions tripled over the previous year and the service generated significantly more transactions than PayPal Mobile. Currently, 60% of all U.S. stores support Apple Pay and it is already present in 71% of the top 100 retailers.
- Apple Pay Cash is the best-rated payment service among people Consumer Reports.
- Today there are about 30 thousand apps on the App Store using subscriptions as a form of payment.
- Revenues from sales of what Apple calls wearable devices (Apple Watch, AirPods and Beats headphones) hit a record high in the quarter, with growth of over 50%.
- Apple TV sales "are pretty strong," according to Maestri.
- Cook recalled that by the end of the year, the ECG feature of the Apple Watch Series 4 will be launched in the United States.
- Apple's retail team recorded record results in the fourth quarter.
- More than 250,000 sessions Today at Apple were made at Ma stores.
- Apple Stores received 74,000 children at Apple Camp during the summer.
- According to Cook, the relationship that Apple has with its customers in stores goes far beyond "just shopping".
- Recently, Apple opened new stores in Italy and Japan and opened its first in Thailand.
Questions and answers
Asked about emerging markets and apps that try to circumvent the App Store's payment system, Cook said the company raised prices in certain markets due to currency fluctuations. The result? Markets that have not grown as Apple would like to see. In India, for example, business has stagnated (Cook is still hoping to be able to open stores in the country, something that still depends on talks with the government); at the Brazil, the numbers were a little bit lower compared to fiscal 2017. For Cook, each of the emerging markets has a slightly different story, not just one issue that would solve all problems.
In China, despite the good growth (16%) especially of the iPhone and the Other Products category, the App Store has been skidding. This is because there was a slowdown in the approval of games on the App Store (the result of a new Chinese regulatory configuration that is making things go more slowly). Cook even claimed that some of the largest woolen companies, which are public, were also impacted by this.
Answering a question about health, Cook said that Apple has a huge opportunity in this segment. ?You can see that, in recent years, we have had an intense interest in the area and we are adding products and services, non-monetized services, until now. I don't want to talk about the future, because I don't want to reveal what we're doing, but this is an area of ??great interest to us. ?
Project for FQ1 2019
For the first fiscal quarter of 2019, Apple predicts revenue between $ 89 and $ 93 billion (it was $ 88.3 billion last year ie Apple is already forecasting a record), gross margin between 38% and 38, 5%, operating expenses between US $ 8.7 and US $ 8.8 billion, other income / (expenses) of US $ 300 million and a tax rate of approximately 16.5%.
via MacRumors, AppleInsider