Apple’s latest financial earnings for the first quarter of 2018 have been utterly astounding. The company has never ever crossed the $80-billion revenue mark, but this time, the company has cleared that fence by a huge scale.
Registering a total revenue of $88.3 billion, Apple raked in a total of $20.1 billion in profit, but there are going to be some differences in the report that you will notice compared to the previous quarters.
Firstly, the company sold fewer iPhones in this quarter compared to the same quarter last year. During Q1 2017, Apple sold a total of 78.3 million iPhones, but this quarter, that number was less because the company sold 77.3 million iPhones. So, how was Apple able to generate more revenue while selling fewer iPhones?
Average price of iPhones was much higher thanks to the $999-priced iPhone X
The average selling price of the iPhone was $796.42, which is the highest for any smartphone right now. Investors had provided their forecast that Apple would be able to sell 79 million units. In Q1 2017, Apple made $78.4 billion in revenue and after the iPhone 6s release, the company made $75.9 billion in revenue. It is quite impressive that Apple has been able to make more money while selling fewer iPhones.
It is also possible that the changed design of the iPhone X lead to higher sales. In India, even the OnePlus 5T was unable to outsell Apple’s flagship despite being much cheaper than the bezel-less flagship. This also shows that Apple’s main source of revenue has been iPhones and it looks like it is going to be like this for the coming future.
The rest of the products, including iPads sold 13.2 million units and registered an increase of 0.7 percent compared to the same period last year. Mac sales were down 4.8 percent, as the company only managed to sell 5.1 million units. The company’s wearable lineup, the Apple Watch and its other variants fall under the ‘other’ category and generated a cumulative revenue of $5.5 billion.
Apple currently has no competition in the tablet market and for the upcoming quarter, the company’s revenue forecast is in the range of $60 billion and $62 billion, with gross margins sitting between 38 percent and 38.5 percent.