Apple released its second quarter results in fiscal year 2018. The report showed that Apple’s net revenue for the second fiscal quarter was 61.137 billion US dollars, an increase of 16% from US$52.896 billion in the same period last year; net profit was US$13.822 billion, compared to the same period of last year. The 110.29 billion US dollars increased by 25%.
Apple’s second-quarter earnings per share exceeded Wall Street analyst expectations, but revenue was slightly less than expected. At the same time, Apple’s outlook for third-quarter revenue exceeded analyst expectations and announced a new US$100 billion Stock repurchase program, thereby promoting its stock price rise after the close.
iPhone revenue growth
Mainly rely on iPhone X high pricing
The sales volume of iPhone X and sales volume in the Chinese market became the biggest focus of Apple’s earnings. In the second quarter, Apple’s revenue in Greater China reached US$13 billion, which was in line with European market revenue, which was a year-on-year increase of 21%. Apple CEO Cook disclosed that. , iPhone X is Apple's most popular mobile phone in the Chinese market.
After more than a decade of launching this key product of the iPhone, the revenue of the iPhone series was US$38.032 billion. It still contributed the most important revenue to Apple, accounting for 62.2% of the total revenue.
The second-quarter report showed that despite its quarterly sales of 52.2 million units, it only grew by 3%. This sales did not reach the average of the previous estimate of Wall Street analysts of 53 million. However, its revenue exceeded $38 billion. Increased by 14%.
Due to the price of iPhone X, the market has been questioning the sustainability of the price.
In this regard, Cooke said in a conference call with analysts, iPhone revenue increased by 14% year-on-year, which is a result of sales growth and average selling price growth, which is mainly driven by the iPhone X.
This means that the iPhone X sold for $999 in 2017 will increase the average selling price of Apple's smartphone products.
This sentence may also be understood in this way: Apple's iPhone revenue growth is mainly due to the iPhone X's high pricing.
Cook declined to provide specific information about the sale of iPhone X, but he hinted that the new device is selling well, which makes it in stark contrast to reports from third-party displays showing poor sales and reduced orders.
In fact, Sun Yanyi, dean of the first mobile phone industry research institute, pointed out to the "Securities Daily" reporter that the sale of iPhone X is not ideal.
From a third-party perspective, Apple did not reverse iPhone X's performance in the second quarter. Research firm Canalys data showed that iPhone X shipments were less than 14 million units in the quarter, down from 29 million units in the previous quarter. Analyst TunaAnn Nguyen of the institution analyzed that this shows that Apple's high-end products are facing challenges.
According to the latest report released by Canalys, China's smart phone sales declined in the first quarter of this year. Apple’s market share in China’s smart phone market fell out of the top four.
Apple Services Revenue Increases 31%
Has become the largest mobile internet company
In addition to the income pillar of the iPhone, service business income is the most eye-catching part of Apple's financial report. The financial report shows that in the second quarter, Apple's service revenue exceeded US$9 billion, an increase of 31%.
This is Apple's first net profit of 9 billion U.S. dollars in service business. Apple CEO Cook said, 'it is not a single geographical area or a single service's performance. In every geographic area, the lowest growth rate is 25%. Moreover, From the App Store to Apple Music, from iCloud to Apple Pay, our revenues have set new records. The number of paid subscriptions at the end of the quarter has exceeded 270 million, an increase of 100 million.
Cook also said that in the long run, Apple's goal is to double service revenue in 2016 from the base of 2016.
Sun Yanxi, dean of the First Mobile Phone Academy Research Institute, confessed with the "Securities Daily" reporter that "Apple has become the world's largest mobile Internet company."
As Chinese users become accustomed to paying for mobile applications, Apple's users are gradually becoming accustomed to paying for Apple, and Apple’s practice of collecting 'tolls' for APPs. Apple's Internet service revenue growth and net profit growth are inevitable. Because there is almost no cost. So, the marginal effect and platform effect of Apple's mobile phone appear.
Apple has 800 million mobile phone users globally. According to Sun Yat-sen's rough estimate, Apple has at least 600 million paying users.
Therefore, even if iPhone X is not ideally sold in the context of cell phone homogenization, it is only slightly degraded due to the large user base, and iPhone X is not the rhythm of the crash.
In Sun Yanxi's view, the decline in Apple's mobile phone sales is an inevitable trend. Whether the crash depends on Apple's new product release in September.
Zero distance
This edition editor Zhao Xueyi Responsible editor Gui Xiaosun