Yesterday, in Cupertino, California, Apple released their financial results for the year’s first fiscal quarter. They announced that they’d earned a quarterly revenue of $88.3 billion, an increase of a massive 13 percent from the year before, in addition to hitting an all-time record high.
Tim Cook, the CEO of Apple, said: “We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone line-up. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.”
The media has speculated a lot over the past week, with some venues saying that the iPhone X will cause Apple financial losses, while others have suggested that it’d actually make them a profit. What has happened, in actuality, is that iPhone sales in Q1 were flat, while revenue has increased. Essentially this means that Apple is getting more revenue from selling the same number of units, which suggests that consumers do actually buy higher-priced products from Apple.
Tim Cook later went on to say: “We’ve also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That’s an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers.”
In addition to these figures and statistics, Apple has also provided the following as guidance for Q2:
- revenue between $60 billion and $62 billion
- gross margin between 38 percent and 38.5 percent
- operating expenses between $7.6 billion and $7.7 billion
- other income/(expense) of $300 million
- tax rate of approximately 15 percent
What Apple will do with the iPhone X in Q2 is currently anyone’s guess. How do you think Apple will alter their strategy to ensure a productive Q2? Leave your comments down below.