Apple has recently announced financial results for its fiscal 2017 fourth quarter ended September 30, 2017. The Company posted quarterly revenue of $52.6 billion, an increase of 12 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.07, up 24 percent. International sales accounted for 62 percent of the quarter’s revenue.
Tim Cook, Apple’s CEO said, “With fantastic new products including iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K joining our product lineup, we’re looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device.”
“Apple’s year-over-year revenue growth rate accelerated for the fourth consecutive quarter and drove EPS growth of 24 percent in the September quarter,” said Luca Maestri, Apple’s CFO. “We also generated strong operating cash flow of $15.7 billion and returned $11 billion to investors through our capital return program.”Apple is providing the following guidance for its fiscal 2018 first quarter:
- revenue between $84 billion and $87 billion
- gross margin between 38 percent and 38.5 percent
- operating expenses between $7.65 billion and $7.75 billion
- other income/(expense) of $600 million
- tax rate of 25.5 percent
What to expect in 2018?
Apple is in the middle of valuable beginning. It isn’t an exact science from this to calculate how many iPhones Apple could sell in the December quarter or in 2018 since there are at least the following variables:
- The iPhone X was launched over a month later than the other iPhones
- The current install base is higher
- There are more first day countries launched for the iPhone 8 and X
- The 8 and especially the X have higher prices
Still, stocks can be volatile, and the optimism surrounding the iPhone X and iPhone 8 could turn to disappointment if sales of the new offerings fail to live up to expectations. But Apple is by far the closest, currently commanding a market value about $175 billion above the world’s second largest public company, Google parent Alphabet.