Sailing to $61.1 billion

Cupertino, California — May 1, 2018 — Apple today announced financial results for its fiscal 2018 second quarter ended March 31, 2018. The Company posted quarterly revenue of $61.1 billion, an increase of 16 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.73, up 30 percent. International sales accounted for 65 percent of the quarter’s revenue… More here.

The rumours of probable disastrous numbers for the iPhone X proved to be somewhat inaccurate and taken as a whole this is an extremely good quarter for Apple.

Complaints about the pricing, battery performance and a general dislike of the company in some quarters do not hide the fact that the products are very well made, they work as they should, the support is visible and available, and they tend to outlast rival products by a clear distance. Loyalty builds slowly and Apple is reaping the benefits of that.

4 thoughts on “Sailing to $61.1 billion

  1. It’s amazing both how vilified and idealized the company is! Some people take a lot of delight in showing when they mess up. (And there are certainly some ongoing screwups! The current state of Siri comes most to mind… the reputation of keyboards and dust… quite possibly the Homepod but Apple has turned around some other V1.0 stumbles). Other things are clear strengths, and are likely to keep building, like AirPods and maybe the watch.

    The support aspect is huge. Nothing has a footprint like Apple Stores, and the stuff that comes closest in the USA (carrier specific places, I guess? and Microsofts copy of Apple Stores for the PC side) just have too wide a range of products to cover, you don’t feel the same sense of focused expertise.

    I had early lock-in with Apple because of music – really it started with my first iPod nano, and while there were paths to transfer, it always seemed a bit fraught, especially with “smart playlists”. From that angle, Spotify has a chance of being an equalizer, no wonder Apple is so keen on Apple Music getting a foothold. Services becoming more important is challenging for a company that A. relies a bit on friendly lock-in and B. doesn’t do services all that well

    8 years ago or so, when Android devices were popping up, offering to pick up some of the scrap Apple was leaving behind (earlier speech to text, or graymarket emulators) I kinda decided I’m gonna stick with Apple – like the old Palm, the transfer from one device to another was likely to be painless (especially relative to Android before it shook itself out to just 2 or 3 legit options) and I was likely to be able to get something at the best or very dang near in terms of software and hardware.

    I think that strategy has paid off.

    (Also Apple is one of the few stocks I outright own, and my lazy patience has paid off there as well)

  2. Apple usually does a wonderful job of not giving their customers a reason to look elsewhere. Plus they make it relatively easy to stay when you consider hardware and software upgrades.

  3. Ironically, a friend of mine switched to android (S9) yesterday after a lifetime of apple.
    She wanted a “full phone screen”, but couldn’t justify the cost of the X, i think the monthly amount was double the S9.

    Have to say though, it’s a shame they can’t invest a little more of that revenue in their software QA. IOS11 has been simply terrible for me compared to previous.

    Regret to follow perhaps 😛

    • Well, not all that ironic, in the sense of lots of people making good phone hardware.

      I sort of admire the mental flexibility in being able to switch. For me the software UI is much more critical than “full phone screen” (heh, ironically, perhaps X and its new gestures makes it easier for people to consider jumping ship anyway…)

      Haven’t noticed ios11 being worse than previous releases.

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