TL;DR: It’s a pretty normal Q2 for the company:
“We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus,” said Tim Cook, Apple’s CEO. “We’ve seen great customer response to both models of the new iPhone 7 (PRODUCT)RED Special Edition and we’re thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter. Looking ahead, we are excited to welcome attendees from around the world to our annual Worldwide Developers Conference next month in San Jose.”
Some tidbits from the call:
- Services business almost the size of a Fortune 100 company.
- Double-digit revenue growth from Apple Music and iCloud storage.
- Paid subscriptions for Apple/third parties now exceed $165 million.
- Apple Pay is now in 15 markets. Number of transactions growing quickly.
- 380,000 iMessages per second were sent during the Super Bowl.
- Clips got a mention on the quarterly call!
- Gains in Mac market share thanks to new MacBook Pros.
- iPad numbers better than Apple’s internal expectations. New 9.7″ iPad going well.
- Apple Watch, AirPods and Beats combined revenue for the last year is the size of a Fortune 500 company.
- Mac and services seeing double-digit growth in China.
- Apple excited about opportunities in India and the growth of Retail to 495 stores.
- WWDC and recent Environmental Report both mentioned, with the latter being praised by Tim Cook.
- Tim Cook: Apple is a company that could have only been created in America,” before stating that Apple supports 2 million jobs, in all 50 states.
- The App Store saw its most profitable quarter, and grew 40% year-over-year. Apple saw its biggest increase in paying accounts ever.
- iPhone 7 Plus demand was higher than expected; it took Apple time to adjust supply.
- While he didn’t share numbers, Cook noted that the Apple Watch has “doubled in sales.”
Here are some charts for your enjoyment. Unless you’re an iPad fan, in which case … maybe just move on.
Revenue
Apple saw double-digit revenue growth in US, Canada, Australia, Germany, Netherlands, Turkey and Mexico.
Profit
Services Revenue
Remember, this quarter was one week shorter than the previous one. That services number continues to impress.
“Other Product” Revenue
iPhone Unit Sales
iPad Unit Sales
The slide is slowing, but is still there.
Mac Unit Sales
The new MacBook Pro pushed the Mac this quarter; portables grew at twice the rate of the PC portable market. Mac revenue was up over the sheer unit numbers. The reason is simple; the $899 MacBook Air is no more, and the $999 Air is old. The base MacBook runs $1,299. In short, Macs are more expensive then they were last year.