Tomorrow, we’ll see how much the world loves the latest iPhone. Today, we’ll have to settle for another spectacular report on Apple’s revenue.
Apple brought in $52.6 billion last quarter, a 12 percent increase from the year prior. The device manufacturer blew past analysts expectations of just over $50 billion. Its guidance for 2018 revenue also beats previous estimates.
The company’s happy news sent its stock up by more than 3 percent in after-hours trading and bumped its valuation to more than $900 billion — only $100 billion short of being the first $1 trillion company.
For Apple, the iPhone is still the crown jewel. Apple sold 46.7 million iPhones over the past three months, adding up to $28.85 billion in revenue. But the tech giant has impressively grown sales in every single one of its other product offerings.
“We’re happy to report a very strong finish to a great fiscal 2017, with record fourth quarter revenue, year-over-year growth for all our product categories, and our best quarter ever for Services,” Apple CEO Tim Cook said in a statement.
“With fantastic new products including iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K joining our product lineup, we’re looking forward to a great holiday season,” he continued.
“We’re literally firing on all cylinders,” Cook said on an earnings call with investors Thursday. “This is going to be the best holiday season yet.”
“We’re literally firing on all cylinders,” Cook said.
Sales of Mac computers were up 25 percent from last quarter. Revenue on the iPads were up by 14 percent. Apple does not disclose how many Apple Watches it has sold but said the unit growth was up by more than 50 percent.
Beyond all these devices, Apple is bringing in more money from its services business. The company now has more than 210 million subscribers, which includes Apple Music and iCloud customers. Paid subscribers to Apple’s music streaming service are up by 75 percent from the year prior.
Apple is growing at home and internationally. Cook said Apple achieved record profits in the U.S. and in other regions such as China. Sales in Greater China had been down in every one of the last six quarters, but rose by 12 percent over the last quarter compared to the year prior.
“We were especially happy to return to growth in Greater China,” Apple’s Chief Financial Officer Luca Maestri said.
It should only get better for Apple later this year. The iPhone X — Apple’s latest and most expensive phone yet — wasn’t counted this quarter since preorders were last week. It goes on sale in stores Friday. Sales of the iPhone 8 and 8 Plus began late last month.
Despite the iPhone X’s starting price tag of $999, Cook said he is confident in its ability to sell.
“We’re not trying to charge the highest price we can get. We’re trying to price it for what we’re delivering,” Cook said.
He further justified the price tag by saying the monthly pricing plan can cost users about a few coffees a week.
Tim Cook: new iPhone = “few coffees a week at one of those nice coffee places”
— Tom Braithwaite (@TBraithwaite) November 2, 2017
Cook isn’t just looking forward to future iPhone sales. He’s bullish on the future software within Apple devices.
“We believe AR is going to change the way we use technology forever,” Cook said.
Cook also noted Apple’s growing retail presence. The company recently opened a new store on Michigan Avenue in Chicago, and Cook said the stores are prioritizing hosting community-focused experiences.