Record iPhones, Apple Watch selling very well, almost $ 250 billion in cash… check out the highlights of Apple's first fiscal quarter of 2017

Just yesterday Apple released the financial results of its first fiscal quarter of 2017 with the right to records!

Revenue stood at $ 78.4 billion (+ 5%), earnings per diluted by $ 3.36 (+ 0.1%) and profit at $ 17.9 billion (-1%). As we can see, the latter fell due to a reduction in margins, which in this quarter were 30.1% (-0.5%). The sales figures for iPhones, iPads and Macs stood at 78.3 million (+ 5%), 13 million (-19%) and 5.4 million units (+ 1%), respectively. The company's Services (which include Apple Music, Apple Pay, App Store and others) saw an 18% increase in revenues, totaling US $ 7.2 billion; j The Others category fell by 8%, with gains of US $ 4 billion.

As always, Tim Cook (CEO) and Luca Maestri (CFO) attended an audio conference to explain and talk a little more about the details of these last three financial months of Ma. Shall we go to the highlights?

General comments

  • The $ 78.4 billion revenue was a record for the company.
  • Diluted earnings for the first fiscal quarter of 2017 ($ 3.36) also represented a record for the company.
  • Apple now has $ 246.1 billion in cash and marketable securities, $ 8.2 billion more than when it closed the fourth fiscal quarter of 2016.
  • Of that $ 246.1 billion, more than $ 200 billion is outside the United States. Apple expects that some type and tax reform will be passed in the US later this year in order to repatriate that snort.
  • Overall, Apple acquires between 15-20 companies a year, regardless of their size.
  • The company returned nearly $ 15 billion to investors through dividends and share buybacks; thus, $ 201 of the $ 250 billion in the Capital Return Program has already been completed.
  • And take records: revenues in four of the five geographic regions where Apple is present have also broken records.
  • The quarter benefited from having a 14 week period, but this according to Maestri was offset by factors such as a lower inventory of some products and a payment of $ 548 million that Apple received last year (lawsuit involving patent infringements against Samsung).
  • In Greater China, Apple's performance dropped about 8%; of these, 4% can be linked to currency variations. In China itself, revenues were stable (+ 6% if measured in constant currency); despite the difficulties, 50% of the sales of iPhones went to new users and sales of Macs and iPads are doing well.
  • Apple had a record performance in India and intends to invest significantly there.

iPhones

  • IPhones broke records this quarter, both in terms of sales (78.3 million) and revenue (US $ 54.4 billion).
  • Without going into details and disclosing numbers / percentages, Cook said that the demand for the iPhone 7 was very high; among the Plus models already launched by the company, the 7 Plus was the one that had the best performance.
  • Only now, months after the launch, that Apple was able to stabilize inventories and meet demand for iPhones 7 and 7 Plus.
  • The iPhone has grown by two digits (that is, more than 10% or more) in Australia, Canada, the United States, Western Europe, Japan and some other markets.

iPads

  • Despite the fall in numbers, sales of 13.1 million units were higher than expected by Apple.
  • Sales of tablets grew in China and India, where the company expanded its distribution.
  • The iPad today has 85% of the tablet market that costs $ 200 or more.
  • Customer satisfaction (99%) and purchase intentions remain very high.

Macs

  • Like the iPhones, the Macs were also beautiful; although the 5.4 million units are not a record, the revenue generated by them ($ 7.2 billion) was.
  • Apple has managed to grow 10% or more in many markets.
  • The demand for the MacBook Pro with Touch Bar is “very good”, according to the Apple CEO.
  • Most customers who have purchased new Macs new to the platform, ie are migrating from Windows PCs.

Services

  • The $ 7.2 billion revenue a new record for Apple and the 14 week was more than offset by the money paid by Samsung last year.
  • And take more records! The App Store also had the best performance ever, with December representing the best month in the store's history ($ 3 billion); today there are about 2.2 million apps available in the store.
  • Of the $ 60 billion already paid to developers, $ 20 billion was distributed in 2016.
  • Apple Pay transactions were up 500% compared to the same period in 2015; the number of users has tripled.
  • The web version of the mobile payment system is now available in almost 2 million online stores; Comcast will start accepting Apple Pay in February.
  • Financially speaking, the “Services” category would already be very close to becoming a ranking company Fortune 100.
  • Despite the great growth in the “Services” category, Cook is not satisfied and said that he intends to double her earnings in the next four years.
  • Cook mentioned that the company is just getting started when it comes to investing in its own content and that Apple is still learning a lot about it; will it finally be a global service streaming of videos coming, even to give a little boost to the gains in the “Services” category?
  • If we combine Apple Music and iTunes (Music) Store, Apple's music market has grown again; Apple is also gaining well from space sales on iCloud and AppleCare.

Others

  • Apple does not discriminate against Apple Watch sales in its reports, but Cook said the watch also hit record revenue.
  • More than that: Cook said Apple was unable to produce enough watches to keep up with demand.
  • Also without discriminating against sales of AirPods, Cook said the response from the market is being incredible.
  • With AirPods, Apple Watch and Beats headphones, Apple believes it now has a very rich and promising line of wearables (wearables).
  • Virtually all car manufacturers in the world are committed to CarPlay, which is already in use by about 1 million people.
  • The poor performance of the “Others” category is due to Apple TV, which apparently had a sharp drop in sales in the past few months.
  • Apple stores also grew two digits in both revenue and visitor numbers.
  • Apple plans to open its first store in Singapore, while Dubai wins a second; store renewal plans, like the one on Apple Fifth Avenue, continue.

Questions and answers

  • Asked about the issue of valuing the dollar and the relationship with emerging markets, Maestri said the level of interest in emerging markets is phenomenal and that in many places the middle class is growing. However, the valued dollar does not help the company and, therefore, Apple needs to be careful in price decisions and in the balance between units, revenue and margin. nis, Maestri!
  • Regarding the dispute with Qualcomm, Cook said that he still prefers to reach an agreement rather than go to court, which he considers to be the last option in all cases; however, the Apple CEO said he had no option as Qualcomm insisted on charging royalties about technologies that had nothing to do with it. “So the more we innovate, the more money Qualcomm would collect for no reason. a bit like buying a sofa and being charged differently, depending on the house he is going to enter. ”
  • Making a slight advertisement for HomeKit, Cook said that he has automated a good part of his house. He says "Good morning" to turn on the lights and make coffee, for example; he also automated the fireplace, the locks and more. "This level of home automation was unimaginable just a few years ago, and is here today with iOS and HomeKit."

Graphics

Below, some interesting graphs that summarize in numbers the first fiscal quarter of Apple 2017:

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

Apple's first fiscal quarter 2017 charts

(via MacRumors, AppleInsider, MacStories)