Personal Finance

Here Are 4 All-Time Records Apple Broke in 2018's First Quarter

People walking into an Apple store that features tall glass windows

Apple (NASDAQ: AAPL) investors weren't thrilled about the lower-than-expected guidance for the 2018 second quarter, but they still have a lot to celebrate from the first-quarter earnings report.

The Cupertino, California-based tech giant provided guidance for second-quarter revenue in the range of $60 billion to $62 billion, lower than analyst expectations for $65.73 billion.

However, it was far from a disappointing quarter, considering that Apple reported four all-time records , including net income and overall revenue. The record-breaking results were fueled by record iPhone revenue, thanks to the higher prices on its smartphone lineup.

If you need more reasons to buy Apple stock , here's an overview of the record highs from Apple's 2018 first-quarter earnings report.

People walking into an Apple store that features tall glass windows

Apple broke a number of records last quarter despite falling iPhone shipments. Image source: Apple.

1. iPhone sales per 13-week quarter

Apple managed to report its highest-ever quarterly iPhone sales revenue, despite selling nearly one million fewer smartphones compared to the first quarter of 2017 -- simply because its iPhones are more expensive now. The average sales price for an iPhone jumped to $796, up from $695 a year ago, according to Apple.

Apple sold 77.3 million iPhones during the last period; while that's less than the same quarter last year, it's also the highest ever for a 13-week quarter. Last year's first quarter was 14 weeks long, and Apple sold 78.2 million iPhones. On the earnings call , Apple CEO Tim Cook kept reminding investors about the week's difference between the two quarters, implying that the company might have matched or beaten iPhone sales otherwise.

Cook also hit back at the critics of Apple's expensive iPhone X (its starting price is $999), saying that it was the world's best-selling smartphone in the quarter ended in December, according to data from Canalys. He also noted that the iPhone X has been Apple's top-selling smartphone each week since it launched in early November.

2. App Store revenue

Apple's newly redesigned App Store is attracting record amounts of spending. During the week of Dec. 24, a record number of customers bought or downloaded apps from the App Store, for a total $890 million spent in the seven-day period. In addition, customers spent $300 million on the App Store on Jan. 1, its highest-ever sales day since launching in 2008.

Apple said it's noticing an uptick in augmented reality apps. For example, December marked the return of the hit gaming app Pokemon GO, with its new augmented reality features built with ARKit. The app shot to the top of the App Store's charts.

The company includes the App Store in its overall services revenue, which saw a healthy 18% year-over-year increase to $8.5 billion.

3. Overall revenue

Apple's overall revenue was also its highest recorded at $88.3 billion, a 12.7% increase from the same period last year. This past quarter's revenue was about $10 billion more than Apple's previous revenue record, set in the same period last year. This is significant, considering this quarter was a week shorter than the 14-week year-ago quarter.

The company noted that iPhone revenue was one of the key drivers of its highest-ever quarterly revenue. Apple said its three new iPhone models (the iPhone X, iPhone 8, and iPhone 8 Plus) brought in the most revenue of any of its past iPhone lineups.

4. Net income and earnings per share

Apple also boasted its highest-ever net income at $20.1 billion, up $2.2 billion year over year. Diluted earnings per share were up about 16% to $3.80, also an all-time record.

Like the other records, this one was helped by the year-over-year jump in iPhone revenue, despite the drop in quarterly iPhone sales from last year. Some investors are encouraged that Apple can keep growing its revenue and profit despite slowing demand for iPhones.

However, other investors are focusing on next quarter's guidance for revenue in the range of $60 billion to $62 billion, which is significantly lower than the $67.1 billion analysts were expecting. On the earnings call, CFO Luca Maestri pointed out that Apple is still guiding for revenue growth of 13% to 17% compared to the same period last year.

To calm analysts' fears about a slowdown in iPhone growth -- Apple's longtime key revenue driver -- Maestri also noted that Apple actually expects iPhone revenue to grow double digits in the second quarter, as compared to the year-ago quarter.

Most Apple investors should be breathing a sigh of relief after this report, considering the pre-earnings negative press reports from Asia about slowing iPhone X sales forcing the company to cut production in half. As usual, Apple held its own for another quarter.

Next up? Apple just started selling its first home speaker, the HomePod , on Feb. 9.

10 stocks we like better than Apple

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 5, 2018

Natalie Walters has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AAPL

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More