Apple Revenue Up 20% & Services Revenue at New All Time High of 10 Billion

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Apple keeps growing its huge cash piles with its best ever quarter for services & Mac. It announced financial results for its fiscal 2018 fourth quarter ended 29 September, 2018.

Apple announced quarterly revenue of US$62.9 billion which represents a 20% increase from its year ago quarter. International sales accounted for 61% of the revenue.

The Rest of Asia Pacific, which includes Australia, grew 22% from the year ago quarter to US$3.42 billion this year.

Apple Revenue Region Q4 2018
Apple Revenue by Region Q4 2018

It was the best September quarter revenue for iPhone & wearables and the best ever quarter for Services & Mac. Wearables sales including products like Apple Watch and AirPods increased 50% year over year.

Services revenue grew from US$8.5 billion in the 4th quarter of fiscal 2017 to US$10 billion in the 4th quarter of fiscal 2018.

iPhone earned Apple US$37.2 billion, up from last year’s $28.8 billion, with sales of 46.9 million units versus 46.7 million for the same period last year.

The average selling price of the iPhone is US$793, up from the US$617.99 from one year ago as Apple started selling more higher end models when it introduced the iPhone X, XS & XS Max.

iPad earned Apple US$4.1 billion, down from last year’s $4.8 billion, with sales of 9.7 million units versus 10.3 million for the same period last year.

Mac earned Apple US$7.4 billion, up from last year’s $7.2 billion, with sales of 5.3 million units versus 5.4 million for the same period last year.

Apple Revenue Product Q4 2018
Apple Revenue by Product Q4 2018

Apple advised that this will be the last time they announce unit sales of products.

We’re thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our 2 billionth iOS device, celebrated the 10th anniversary of the App Store and achieved the strongest revenue and earnings in Apple’s history

Apple CEO Tim Cook

Apple is providing the following guidance for its fiscal 2019 first quarter which is less than many analysts were expecting:

  • revenue between US$89 billion and US$93 billion
  • gross margin between 38 per cent and 38.5 per cent
  • operating expenses between US$8.7 billion and US$8.8 billion
  • other income/(expense) of US$300 million
  • tax rate of approximately 16.5 per cent before discrete items

Source: Apple