Apple Returns to Growth: Company Reports Record-Smashing $78.4 Billion Revenue
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After having weathered one of its worst slumps in overall revenue and growth since 2001, Apple on Tuesday afternoon reported its all-time best quarterly earnings ever.
Apple shipped a total of 78.29 million iPhone 7 handsets, comfortably besting estimates of 77.42 million units. As far as overall revenue, the Cupertino-company raked in a staggering $78.4 billion, exceeding estimates by over $1.15 billion. In comparison, the company’s previous record-setting quarter — the same fiscal Q1 of last year — saw the company bring in $75.9 billion, on sales of 45.5 million iPhone 6s handsets.
In stark contrast to the iPhone, Apple’s iPad unfortunately continues to struggle, and the company reported shipping just 13 million units during the holiday quarter, which is down 19% from the 16.1 million units shipped during the same quarter last year. Worth noting, however, is that Apple didn’t release any major iPad refreshes during fiscal Q1 ending December 30 — aside from minor storage bumps and price drops to the 12.9- and 9.7-inch iPad Pros, which were introduced during the fiscal Q1 and Q2 of 2016, respectively. Also, the rumor mill has been swirling like crazy lately, as analysts and Apple insiders are predicting that 2017 will be a big year for the iPad.
“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way,” said Apple’s CEO, Tim Cook, adding that there was “especially strong demand” for the company’s top-tier iPhone 7 Plus. “We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch.”
Apple also reported greater than expected growth in its ever-expanding Services business, which includes iCloud, iTunes, Apple Music, and the App Store. Numerically speaking, Cupertino’s Services business, in and of itself, brought in $7.17 billion, besting estimates of $6.91 billion, and easily quashing the company’s previous record of $6.06 billion set during the same fiscal Q1 last year.
“Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”
As far as the future is pertinent, Cook and company have plenty of reasons to be optimistic. While the Chief Executive provided guidance of between $51.3 and $51.5 billion in earnings for Apple’s fiscal Q2 of 2017, the company still has plenty of time, over the next few quarters, to deliver on its promises of many exciting things to come.
