68 things Apple just told us about its business
Apple’s recently published Q318 results confirm the company’s biggest June quarter ever, with over $53 billion revenues. In conversation after the announcement, the company revealed a bunch of additional insights, summarized here:
- Over 100 billion Siri requests so far this year
- The iPhone user base grew “double digits”.
- iPhone sales grew faster than the market in the U.S., greater China, Canada, Germany, Australia, Russia, Mexico, and the Middle East and Africa
- iPhone revenue grew 20% year-over-year with iPhone ASP increasing to $724 from $606
- Double-digit unit growth in several markets including the US, Canada, Germany, Switzerland, Mexico, Hong Kong, Russia, the Middle East, and Africa.
- Reduced iPhone channel inventory by 3.5 million units during the quarter.
- iPhones make up three of the top five smartphones in the US, UK, and Japan
- More active iPad users than ever
- Pad is a 60% share of the US tablet market in the June quarter up from 51% share a year ago
- Almost half of iPad purchases in the quarter were by customers new to IPad
- 5 consecutive quarters of growth
- Gained bigger share of market
- Double-digit iPad unit growth in greater China and Asia- Pacific with a new June quarter record for iPad sales in Mainland China.
451 research user satisfaction data
- iPhone X, 8 and 8 Plus got 98 percent satisfaction
- Across all iPhone models, customer satisfaction was 96%
- Among business buyers who plan to purchase iPhones in the September quarter, 81% plan to purchase iPhones up 3 points from the last survey.
- iPad customer satisfaction ratings of 94
- 75% of business customers who plan to purchase tablets in the September quarter plan to purchase iPad
- Mac sales declined slightly, which Apple attributed to a different launch schedule
- 60 percent of purchases to customers new to the Mac
- New June quarter records for Mac sales in India, Turkey, Chile, and Central and Eastern Europe.
- Majority of Salesforce’s 35,000 employees use Macs.
- “Companies tell us that Mac has been instrumental in helping them attract and retain talent while providing strong security, streamlined deployment workflow, and significantly lower total cost of ownership,” said Mistri.
- Wearables up 60 percent
- Revenue over $10 billion across last four quarters
- (Other category, which includes other segments, hit $3.7b in the quarter)
- Apple Watch saw growth in the “mid-40 percent range” for record June
- AirPods are the new iPod “we’re selling them as fast as we can make them”
On services and the App Store
- App Store, Apple Care, Apple Music, Cloud services, and Apple Pay, all set new June quarter records.
- Services generated $9.5 billion, up 28 percent
- Double-digit services growth in all geographic segments
- There are now over 300,000 paid subscriptions from Apple and others contributing to services income, up 60 percent y-o-y.
- Over 30,000 apps now include subscription-based services
- 100 percent growth in third-party video services subscriptions
- Now ten years old, the App Store is attracting more customers who are downloading more apps, generating twice as much revenue as nearest competitor, Google Play.
- Developers have earned $100 billion since the App Store launched
- App Store ads now in Japan, South Korea, France, Germany, Italy, and Spain
- Cloud services revenue up 50 percent
- “Our communication services are experiencing record usage”
- Articles read on Apple News doubled
- iTunes will offer the world’s largest collection of Dolby Atmos movies from fall
- “We’re also thrilled about our pipeline that have some new services in it as well,” said Cook.
— Horace Dediu (@asymco) August 1, 2018
All about Apple Music
- Revenues up 50 percent year-on-year
- Over 50 million users (paid and trial)
- Leads in the U.S. and Japan “we’ve been told”, said Cook.
On Apple Pay
- Now in 24 markets
- In Germany later this year
- Over 4,900 banking partners worldwide
- Over a billion transactions last quarter (more than Square or PayPal)
- That’s three times the year ago quarter
- Growth accelerated since the March 2018 quarter.
- Apple Pay Cash “already serves millions in the U.S.”
- eBay, CSV and 7-11 will introduce Apple Pay support this fall
- Apple Pay now available at 12 U.S. mass transit services
- Over 250,000 Today at Apple sessions
- Now 50 retail stores in China
- 46 percent of retail is now outside the U.S.
- Over 4 million people are currently beta testing Apple’s Mojave, iOS and other software
- Apple TV units and revenue grew by very strong double-digits in Q3.
- 10 suppliers in China are taking part in the Clean Energy Fund
- The fund will develop clean energy projects totaling more than 1 gigawatt of renewable energy in China
- That’s the equivalent of a million homes
- Over 5,000 schools and community colleges now teach Everyone Can Code
- Over 350 schools willn offer Apple’s Everyone Can Create in the upcoming school year.
Looking forward — guidance
- Predict year-over-year growth of about 16% to 19%.
- Gross margin between 38% and 38.5%.
- OpEx to be between $7.15 billion and $8.5 billion.
Please let me know if I missed anything you need to know.