Apple has officially announced their earnings for the fourth quarter of their fiscal year. The report suggests that their revenue was up 20% year-over-year to $62.9 billion. Gross margin was recorded at 38.2%, increased by 0.3% from last year. Operating income went up to 22.9% at $16.1 billion, and possibly due to the new tax cuts, net income went up 31.8% at $14.1 billion. Furthermore, overall earnings per share increased by 40.6% at $2.91.
iPhone still leads the way at Apple, but as per their norm, the Q4 results will only have a glimpse at the new launch sales, since the quarter ended on September 29. iPhone revenue this year was up to a staggering 29% at $46.9 billion. However, overall unit sales only increased by 0.4% as compared to Q4 2017, with 46.9 million devices sold this quarter. But with iPhone pricing increasing rapidly in an upward trajectory, Apple now has a $793.04 average selling price on the iPhone.
Apple’s services are up 17% to just under $10 billion for the quarter as compared to last year. There are the services which include digital content, Apple Pay, and iTunes. For this quarter, Mac sales fell down by 2% to 5.3 million units, with revenue going up by 3% reflecting the higher price of the latest models.
Apple sold 9.7 million iPads in this quarter, which decreased by 6% from last year. Revenue fell even further, coming in at $4.1 billion for the quarter, which is 15% lesser from Q4 2017. Apple’s less costly iPad has likely been the cause of lower sales of the more profitable Pro models, but like the Mac updates, the latest iPad Pros were just announced and won’t have much of an impact on this quarter’s earnings.
Expected revenues for Q1 2019 are to be in a range of $89 billion to $93 billion, with margins between 38% and 38.5%. Henceforth, Apple has decided to stop reporting unit sales. This may come as a bad news because Apple has been more open on their earnings than their competitors.