The 57 Most Important Numbers from Apple’s Q4 2017 Earnings
As iPhone X mania hit the planet, Apple announced yet another quarter that proved the company that has been declared doomed since inception continues to do rather better than critics and competitors expect. To save you time, I’ve put together the 57 most important items of data the company revealed, though sadly some information is a little vague.
iPhone — growth returns (it never went away)
- iPhone 8/8 Plus were most popular models since launch
- iPhone 8 Plus “got off the fastest start of any Plus model” (ie. It’s popular).
- 7 million iPhones, up 3% over last year
- 451 Research data reveals U.S. customer satisfaction of 97 percent or higher across all iPhone models. (95 percent among enterprise users).
- 451 Research data reveals iPhone customers 95 percent loyal
- 451 Research data reveals 69 percent of consumers who intend purchasing a smartphone in the next 90 days plan to buy an iPhone. (Five times the rate of the closest competitor).
- 451 Research data reveals eighty percent of those planning to buy a smartphone by the end of December plan to purchase an iPhone.
iPads — no other tablets really sizzle
- 3 million iPad sales, up 11 percent, driven by iOS 11 improvements
- NPD data claims iPad has 54 percent (up from 47%) of US tablet market (does this include Kindle, because that’s the only tablet I ever see?)
- 451 Research data reveals 97 percent customer satisfaction, and that 70% of consumers and businesses planning to buy a tablet will buy an iPad
The Mac is back
- Highest Mac revenues ever, best September quarter (up 25%)
- 4 million Mac sales, up 10 percent yoy
- In education, Mac customer purchase grew “double digits”
- All-time record Mac purchases among enterprise customers
Wearables: Tomorrow’s world
- Apple Watch sales up 50%
- Apple’s entire wearables business up 75% YoY in Q4
- Apple’s other products segment includes software, services, Beats, Apple TV, iPod touch, Apple Watch and Apple and third party accessories. Revenue reached £3.2 billion.
Developing markets: The future now
- All-time record revenue in the US, Western Europe, Japan, Korea, the Middle East, Africa, Central and Eastern Europe, and Asia.
- Back to growth in China (up 12%), record Mac sales there,
- Android to iPhone switchers in China increased
- Up 30% in Mexico, the Middle East, Turkey, Central and Eastern Europe.
- India revenue doubled y-o-y
- The majority of iPhone SE sales in India were made in India, Apple has made them there for 6-9 months
- iPad sales in China up 25 percent
- iPad sales in India up 39 percent
Apple Services: Toward a billion dollar day
- Service revenue reached $8.5 billion, up 34%
- (This includes a “favorable one-time revenue adjustment of $640 million”
- Service revenue in 2017 was $30 billion, up from $24 billion in 2016.
- Apple still aiming for $48 billion in services by 2020.
- Apple Music subscriber numbers up 75%
- iCloud saw double-digit growth in both monthly average users and revenue.
- Paid subscribers across all Apple services reached over 210 million, up 25 million in the quarter
Apple Pay: Fintech opportunity knocks
- Apple Pay active user base has doubled in the last 12-months
- Apple Pay transactions up 330%
- 5 million US merchants will take Apple Pay by end of the year
- 70 percent of US grocery chains now accept it
At the App Store
- Over 1,000 AR apps already at App Store
- App Store set “a new all-time record”
The new town hall — Apple Retail
- Stores attracted 418 million visitors
- Traffic up 19 percent (yoy) during “week of new product announcements”
- Mac and iPad Pro sales at retail up in double digits, compared to last year
- 200,000 Today at Apple sessions.
Research and development
- Apple’s all-important R&D investment remains high, at $2,997 million, up from $2,570 in the year ago quarter, Apple spent $11,581 million up from $10,045 million last year.
- Apple spent $1.5 billion more on R&D in 2017 as in 2016.
Money management
- $52.6 billion revenue, up 12% y-o-y, EPS $2.07
- Gross margin was 37.9%
- $268.9 billion in cash and securities, a sequential increase of 7.4 billion.
- $252.3 billion of this cash, 94% of the total, is now in the United States. (This is interesting and worth looking at, as a great deal more was formerly held internationally).
- Issued $7b in debt in the quarter, now holds $104b in debt and $12b in outstanding commercial paper
- Paid $3.3 billion in dividends
- Spent $4.5 billion on repurchasing 29.1 million shares
- Have now completed almost 234 billion of 300 billion capital return program, including $166 billion in share repurchases.
Expectations
- Q1 FY2018 revenue expectation is $84-87 billion
- Gross margin between38-38.5 percent
- OpEx between 7.65-7.75 billion
- Tax rate around 25.5 percent.
- Shareholders to get 63 cents per share.
Have I missed any important data? Please help me to help others by letting us all know in comments below. Thank you.
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