This afternoon, Apple announced their earnings for the second quarter of their 2018 fiscal year, and the company has set a new revenue record for the quarter with $61.1 billion in revenue. Apple had a gross margin of 38.3% for the quarter, down slightly from the 38.9% margin a year ago. Operating income for the quarter was up 12.7% to $15.9 billion, and net income was up 25% to $13.8 billion. Earnings per share came in at $2.73, up 30% from a year ago.

Apple Q2 2018 Financial Results (GAAP)
  Q2'2018 Q1'2018 Q2'2017
Revenue (in Billions USD) $61.137 $88.293 $52.896
Gross Margin (in Billions USD) $23.422 $33.912 $20.591
Operating Income (in Billions USD) $15.894 $26.274 $14.097
Net Income (in Billions USD) $13.822 $20.065 $11.029
Margins 38.3% 38.4% 38.9%
Earnings per Share (in USD) $2.73 $3.92 $2.10

As always with Apple, the bulk of their revenue came from the iPhone, which pulled in $38.0 billion this quarter on sales of 52.2 million devices. Apple doesn’t break down which phones were sold, but Tim Cook did say “Customers chose iPhone X more than any other iPhone each week in the March quarter” and that’s clear from the revenue, which was up 14% from last year, on only 3% unit sales increase, so the average selling price for iPhone is now $728.34.

iPad had a small gain in sales this quarter as well, with 9.1 million devices sold, which is up 2% from a year ago. Revenue for iPad was $4.1 billion, which was up 6%, so like iPhone, Apple is earning more per device sold than previously.

Mac sales slumped, down 3% from a year ago to 4.1 million Macs sold, but thanks to higher revenue per device for Mac as well, the revenue was flat compared to last year.

While iPad and Mac were once the other horses in the Apple stable, they’ve been eclipsed by Apple’s services, which includes digital content, AppleCare, Apple Pay, and other services. Apple had revenues of $9.2 billion for this quarter on services alone, which is growth of 31% from last year. Unlike their other products, the services also didn’t dip from the Christmas quarter either, with sequential growth of 8% compared to Q1 2018.

Apple Q2 2018 Device Sales (thousands)
  Q2'2018 Q1'2018 Q'2017 Seq Change Year/Year Change
iPhone 52,217 77,316 50,763 -38% +3%
iPad 9,113 13,170 8,922 -31% +2%
Mac 4,078 5,112 4,199 -20% -3%

Apple’s Other Products, which includes AirPods, Apple TV, Apple Watch, Beats, iPod, and accessories, also continues to have strong growth, with $3.9 billion in revenue for the quarter, which is up 38% from a year ago.

Despite concerns about iPhone X sales by analysts, Apple has yet again set the bar on how to print money. And, they’ve done it with the iPhone only being 62% of their revenue for this quarter. It’s been well over 70-75% in the past. At the growth rate of services, it’s close to the combined revenue of the iPad and the Mac.

Apple has also announced a further $100 billion in shares will be repurchased, and they are raising the dividend 16%. For the third quarter, they are projecting revenue between 51.5 and 53.5 billion, with margins between 38 and 38.5%.

Source: Apple Investor Relations

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  • melgross - Thursday, May 3, 2018 - link

    That’s an idiotic statement, but you know that, don’t you? Reply
  • ws3 - Thursday, May 3, 2018 - link

    Clearly Anandtech has made a conscious decision not to review Apple products. This could be due to a lack of interest on the part of the staff, a lack of time due to a huge backlog of other products to review, or both things together.

    I don’t see this as a problem, as I myself (and I guess most other Apple customers) don’t really care whether their iPhones review well on Anandtech, although the technical info Anandtech could provide would be interesting.
    Reply
  • melgross - Thursday, May 3, 2018 - link

    I see it as a major problem. These are the most popular individual phones out there, usually at the top of the lists everywhere they’re sold. The reason why Apple is number two rather than number on in sales is because the average selling price for an Android phone is $220, while for the iPhone, it’s $725.

    Apple outsells Samsung in the high end, and high middle end by 4 to one. Given that, there’s no excuse not to review them, as they have in the past.
    Reply
  • id4andrei - Thursday, May 3, 2018 - link

    Don't you understand that the iphone is the review proof phone? No one reeds the reviews when they decide to get an iphone. Anandtech is also about other tech other than Apple. I'd even argue the audience of this site is less interested about Apple. Reply
  • ws3 - Thursday, May 3, 2018 - link

    Also, I found the articles about the Exynos Galaxy S9 quite interesting. Given what “everyone” was saying leading up to the launch, I expected the Exynos version to perform much better than the Snapdragon version. It was pretty interesting to see some analysis about how Samsung screwed up their own processor design so badly. Reply
  • melgross - Thursday, May 3, 2018 - link

    Around the world, where price is an issue, Samsung uses their Exnos chips. Where performance is an issue, they use the Snapdragon. This has been pretty consistent over the years. Reply
  • id4andrei - Thursday, May 3, 2018 - link

    That is not true. Past Exynos chips have outperformed their Snapdragon variants. This is the first year when the Snapdragon is an overall better performer. Reply

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