One day before Apple’s most important product launch in years, the company has released its quarterly earnings info. As usual, Apple’s fiscal Q4 doesn’t contain a full three months of iPhone sales, so it’s hard to tell how the launch of the iPhone 8 and 8 Plus affected the company, let alone the iPhone X. But, the company did manage to sell 46.7 million iPhones in the last three months, good for a slight 2.6 percent growth compared to a year ago.
iPhones weren’t the only hardware Apple released in the last quarter, though — in fact, most of the company’s product line got a pretty big shake-up. The combo of new iPad Pro models alongside the inexpensive but excellent standard iPad led to 10.3 million tablets sold for Apple, up 11 percent year-over-year. This marks the second consecutive quarter of iPad growth after years of slipping sales. Updated MacBook Pro models helped move 5.3 million Macs, up 10 percent from a year ago. Across the board, it’s a strong quarter for all of Apple’s major product categories.
Apple’s services business continues to be the second-strongest part of the company, however. This quarter, the company made $ 8.5 billion in services revenue, up 34 percent from a year ago. On today’s call with investors, CFO Luca Maestri noted that the services revenue included a one-time $ 640 million adjustment in Apple’s favor; excluding that, services were still up 24 percent. He mentioned a few highlights, as well: Apple Music subscriptions are up a whopping 75 percent year-over-year, App Store revenue set a new all-time record, and iCloud continues to grow in the “strong double-digits” range. Between those three, the company’s services business is becoming a juggernaut.
Surprisingly, that’s not the fastest-growing category for Apple — that would be the “other products” category that includes hardware like the Apple Watch, AirPods and Apple TV. Revenue hit $ 3.23 billion in the last quarter, up 36 percent year-over-year. It’s the smallest revenue category for Apple, so it’s easier to make big percentage gains in that fashion, but it does point to strength in the company’s smaller products. If only we’d get Apple Watch or Apple TV sales numbers.
This strong performance led to total revenue of $ 52.6 billion, up 12 percent from one year ago; net income of $ 10.7 billion was likewise up 19 percent year-over-year. In a quarter that’s typically the calm before the holiday storm, Apple has to be happy with these results.