Apple released the iPhone X last year and all hell broke loose. People loved and abhorred the notch and doubted if the phone was actually worth its price. However, the company has now shown a whopping $61.1 billion revenue and $13.8 billion net profit globally for the second quarter of 2018 (American fiscal year). Tim Cook, the CEO of Apple also said that the company has set a new record for the first-half growth in India.
Apple will now focus on studying the Indian domestic market and is now ready to put more energy into it. Tim Cook said, “Let me start with India and then I’ll talk more about China. India, we set a new first-half record. So we continue to put great energy there… Our objective over time is to go in there with all of our different initiatives from retail and everything else. And so we’re working toward those things. It’s a huge market and it’s clear that many people will be moving into the middle class over time as we’ve seen in other countries.”
In Q1, 2018 Apple had the third position in premium smartphones category with a market share of 20 percent, according to Counterpoint Research. In Q4, 2017 Apple’s share in the premium smartphone category was 46.9 percent. It was followed by Samsung and OnePlus at 24.9 and 17.6 percent share, respectively. Apple’s current $61.1 billion revenue is an increase of 16 percent from last year’s second quarter and 65 percent of this revenue has come from international sales.
Tim Cook said, “We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, services and wearables. Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. We also grew revenue in all of our geographic segments, with over 20 percent growth in Greater China and Japan.”
The global handsets profit dropped 1 percent year-on-year in the Q4 of 2017 and Apple’s iPhone X collected a massive 35 percent of the total handsets profit alone. As a result, Apple grew 1 percent year-on-year in the same quarter. In stock buybacks, Apple announced an additional $100 billion. The company’s CFO, Luca Maestri said, “Given our confidence in Apple’s future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorization and a 16 percent increase in our quarterly dividend.”
From China, Apple reported a $13 billion in revenue. Tim Cook commented, “China, I continue to believe is a phenomenal country with lots of opportunity from a market point of view, but also lots of opportunity from an app developer’s point of view. We have almost two million application developers in China that are writing apps for iOS and the App Store, and they’re doing unbelievably creative work and innovative work. So we look at China holistically, not only as a market.”
The execution of the previous $210 billion share repurchase authorisation will be completed by the company in the third quarter. The CFO mentioned, “Our business performed extremely well during the March quarter, as we grew earnings per share by 30 percent and generated over $15 billion in operating cash flow.”