Apple’s Q1 2017 Results

Apple PR:

Apple today announced financial results for its fiscal 2017 first quarter ended December 31, 2016. 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. International sales accounted for 64 percent of the quarter’s revenue.

“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.”

Federico Viticci of MacStories is, as usual, leading the coverage, and Jason Snell of Six Colors has some additional live commentary.

A few notes:

  • Impressively, for a 33-year-old business, the Mac set an all-time revenue record. However, unit sales are effectively flat year-over-year. The ASP on the new MacBook Pros is likely much higher year-over-year.

  • The iPad continued its downward trajectory in both sales and units. This is the first holiday quarter where revenue from the growing “services” category eclipsed iPad revenue. The only major update to the iPad lineup occurred in March of 2016 with the introduction of the 9.7-inch iPad Pro.

  • Though they’re still not breaking out the numbers, Tim Cook said that the Apple Watch had a supply-exceeding quarter. Anecdotally, I see a fair number of people wearing one every morning on the C-Train. I would be surprised if they ever disclose raw sales figures, but I also think that it’s shaping up to be a stealth hit. By contrast, FitBit had a down quarter year-over-year.

It’s a return-to-growth quarter, but not across the board. I sincerely hope that there’s a lot more for the iPad and the Mac this year.

Contrary to popular belief, though, the lack of a headphone jack on the iPhones 7 certainly didn’t hurt: 78.3 million of the damn things were sold in three months. Apple is slowly creeping towards a million a day. Wild.

Update: One reason this was such a record-breaking quarter is because it was fourteen weeks long, not the more typical thirteen. In terms of weekly averages, the quarter is generally weaker than Q1 2016.