Apple reports record first quarter results

Apple on Tuesday reported results for its fiscal first quarter and they were really good. The company posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter.

“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch,” said Tim Cook, Apple’s CEO. “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.”

Apple sold 78.2 million iPhones, up from 74.7 million in the year-ago quarter. They sold 13 million iPads, down from 16.1 million iPads in the year-ago quarter, and they sold 5.3 million Macs, which matches what it sold last year.

“Our outstanding business performance resulted in a new all-time record for earnings per share, and over $27 billion in operating cash flow,” said Luca Maestri, Apple’s CFO. “We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments through our capital return program to over $200 billion.”

  • john doofus

    Matching last year’s Mac sales is a pretty good sign, I think. They didn’t start shipping the new MBP in volume until late December, and I’d imagine they’re still catching up there. And nobody is (or at least nobody should be) buying any of the moribund desktops.

    The iPad… not sure what to say there. Part of the problem is that iPads have such a long useful life; part of the problem is they only released one new model in 2016. Doesn’t seem like the iPad Pro was a hit, which is entirely unsurprising to me. It sits in an awkward spot between a normal iPad (or even iPhone) and a “real” computer like the MacBook, and I just don’t think there’s that big an audience for it.

    • Billy Razzle

      I think the long life is the key. I’m still using my 3rd gen iPad daily and my daughter uses my handed down 1st gen for Netflix at home and iTunes videos in the car. There’s just not tons of reasons to upgrade if you take care of them.

      From a consumer standpoint it’s great. But not if you’re looking to move units.

      Personally I’d love to have a 12″ iPad Pro, but I just can’t afford it.

      • Costa K

        My iPad Air is fine 90% of the time. I do wish it had more grunt and split screen feature of the Pros. But they’re too expensive for me too.

        Personally I’d like to see Apple do something with iOS on iPad. That extra screen real estate is begging to be used better.

      • Mo

        Indeed. Apple makes these devices too well, and supports them for far too long. At least for Wall Street’s tastes.

    • J.

      With new models anticipated by Spring, there is no reason I would purchase a new iPad now.

  • John Kordyback

    The big headline is services. As Horace Dediu points out Apple Services are now bigger than Facebook.

  • StruckPaper

    Note guidance for current quarter – same type of huge drop Q/Q just like a year ago. When actuals were reported in April 2016, $AAPL took a beating. Are investors paying attention to Apple’s guidance this time?

  • DanielSw

    I’m very happy for Apple’s continued prosperity. And I don’t care a hoot what any of its critics or detractors say in comments on the ‘net or in the media, as it’s mostly self-serving crap or propaganda.

    What I do know is the positive impact Apple products have had over nearly three decades on my wife’s and my lives. We honestly can’t imagine what we’d be doing for a living without them.

    We stand happily in the glow of Apple’s ecosystem with Apple phones, watches, Apple TV, peripherals, and computers. And we look forward to Tim’s mentioned new products in their pipeline.

    • ThinkActive

      Here here. Well said!