Apple has released the financial results of its third quarter in 2018. Overall, the company reports a quarterly revenue of $53.3 billion, which is a 17% increase from the same period last year. Apple also notes that sales outside the United States account for 60% of the quarter’s revenue.
In any case, this marks Apple’s best June quarter ever, and its fourth consecutive quarter of double-digit revenue growth. Although the company sold fewer iPhones than expected, there was an uptick in the average price of the devices, especially with the recent release of the iPhone X. Currently, the average iPhone selling price sits at $724, higher than analysts’ estimated $694. Revenue earned from iPhones has thus gone up, but not considerably.
The biggest revenue burst for Apple seems to be in its services department. Apple Music, Apple Care, and iCloud contributed to a 31% increase from the last period. Apple Music in particular is growing fast, boasting a 50% jump since last year’s period. The revenue earned for this section totals to $9.55 billion, a record for the company.
Apple expects its revenue for fiscal Q4 to achieve about $60 to $62 billion, which is a 16% to 19% growth from last year. The strong forecast may point at new hardware releases in the near future. Apart from newer iPhones, there’s the 2018 iPad Pro to look forward to. The 2018 MacBook Pro also just launched, which will be part of those financials.
Apple’s forecast for its fiscal 2018 Q4 is as follows:
- revenue between $60 billion and $62 billion
- gross margin between 38 percent and 38.5 percent
- operating expenses between $7.95 billion and $8.05 billion
- other income/(expense) of $300 million
- tax rate of approximately 15 percent before discrete items
With the strong earnings exhibited by the company today, it’s on track to becoming the world’s first ever trillion-dollar company. In the midst of this, stocks for the company also continue to rise. Apple’s current market cap is at a worth of $935 billion, and in the business’ current health, the $1 trillion target seems feasible.