Apple Q2 2018 earnings reports: Best Q2 ever, iPhone X outsold all other models

Apple sold 52.1 million iPhones between January 1 - March 31, 2018, records 16% growth in revenue

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Apple recently released its financial reports for the fiscal second quarter of 2018, covering the period from January 1st – March 31st 2018. The company sold 52.2M iPhones, 9.1M iPads, and 4.1M Macs, putting the company’s quarterly revenue at $61.1 billion.

Apple Q2 2018: Stronger Than Ever

Image Courtesy: BGR

The Q2 2018 revenue was an increase of 16 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.73, also went up 30 percent compared to last year’s numbers. International sales accounted for 65 percent of the quarter’s revenue.

“Our business performed extremely well during the March quarter, as we grew earnings per share by 30 percent and generated over $15 billion in operating cash flow,” said Luca Maestri, Apple’s CFO. “With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our US operations and work toward a more optimal capital structure. Given our confidence in Apple’s future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorization and a 16 percent increase in our quarterly dividend.”, in a recent Press release.

Apple Q2 2018: The ‘X’ Factor

The star performer for Apple for this quarter too, was the iPhone X. As Apple’s CEO, Tim Cook shared in the press release, “Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter.” He also added that he was “thrilled to report our best March quarter ever” with strong revenue growths across portfolios like iPhones, Services and Wearables. The company also gre revenue in all of its geographic segments, with over 20% growth reported in Greater China and Japan.

Image courtesy: CNBC

Apple Q2 2018: What lies ahead

The Press release also pointed out the capital return program through which, since its inception in August 2012, Apple has returned $275 billion to shareholders, including $200 billion in share repurchases. “The management team and the Board will continue to review each element of the capital return program regularly and plan to provide an update on the program on an annual basis”, the press release further added.

Apple is providing the following guidance for its fiscal 2018 third quarter:
  • Revenue between $51.5 billion and $53.5 billion.
  • Gross margin between 38 percent and 38.5 percent.
  • Operating expenses between $7.7 billion and $7.8 billion.
  • Other income/(expense) of $400 million.
  • Tax rate of approximately 14.5 percent.

With upto 3 new iPhone models set to launch in 2018, it’ll be interesting to see if the Android phone makers can pull of something and stop Apple’s juggernaut. What are your expectations from 2018 iPhone models? Let us know in the comments below.

Rushil doesn’t have any cool things to write about himself in third person, so he’d use this space to type out some gibberish and make you question your decision for having too much free time in your life to be reading author descriptions on a tech blog.

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