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LIVE BLOG: Apple Q3 2018 earnings call

 

  • Shares are up about 3.5% and crossed $197, making a new all-time high at 6:05 PM ET
  • Conference call ends
  • Tim Cook says a lot of people that buy Apple products buy for the whole ecosystem, even though they might not currently use all the different products
  • Smart home business is bigger than HomePod and Apple TV. Apple has been focusing on all businesses; smart home, iPhone, iPad, etc.
  • Apple hasn’t done an analysis on battery replacements or on iPhone upgrades
  • With regards to iPhone ASP outlook, says that the company doesn’t provide unit or ASP guidance; September quarter revenue growth is expected to come from iPhone, services and wearables
  • Apple Music has got more than 50 million listeners; includes paid and trial subscribers
  • Excited about the partnership with Oprah. Recently hired senior TV executives

  • With regards to China; iPhone, iPad, Services, Other Products all saw double-digit growth. Recently-imposed tariffs on Chinese goods don’t cover Apple products. Apple is evaluating  fourth tariff proposal covering about $200 billion worth of imports
  • On iPhone trends, Cook says that iPhone X, 8 and 8 Plus are growing nicely
  • On driving services revenue growth; had double-digit Services growth in all geographic segments
  • Q&A starts
  • Debt retired $6 billion; net cash balance $129 billion
  • iPad unit sales grew for the fifth consecutive quarter; gained a significant share of the global tablet market based on the latest estimate from IDC.
  • iPhone ASP growth, driven by iPhone X, 8 and 8-Plus

  • Services revenue included a favorable $236 million one-time item related to the final resolution of various lawsuits
  • iPhone revenue grew 20% year-over-year with iPhone ASP increasing to $724 from $606 a year ago
  • Shares up 3.5% at 5:20 PM ET
  • CFO Luca Maestri continues with the prepared remarks

Check out Apple Q3 2018 earnings infograph here

  • Wearables revenue exceeded $10 billion over the last four quarters
  • Apple Pay continues to expand, with well over 1 billion transactions
  • Number of articles read on Apple news more than doubled year-over-year
  • Apple music grew by over 50% year-over-year
  • Developers have earned over $100 billion from the App Store since its launch
  • Based on third-party research estimate, the app store generated nearly twice the revenue of Google Play so far in 2018
  • On target to reach the goal of doubling fiscal 2016 Services revenue by 2020
  • iPhone grew faster than the global smartphone market gaining share in many markets including the US, Greater China, Canada, Germany, etc.
  • Double-digit growth in iPhone active installed base
  • Seventh consecutive quarter of accelerated revenue growth
  • Tim Cook starts his prepared remarks. The stock is up about 3% at 5:35 PM ET
  • Q4 2018 revenue outlook $60-62 billion
  • Stock up more than 3% and crosses $196 mark at 4:55 PM ET
  • Will Apple surpass the 52-week high ($195.96) it achieved on last Thursday?

  • “We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said CEO Tim Cook
  • iPhone unit sales 41.3 million
  • Shares up 2.5%
  • Apple beats earnings and revenue estimates. EPS up 40% to $2.34, revenue up 17% to $53.3 billion
  • Shares of Apple (AAPL) inched up 0.2% to $190.29 at the end of today’s regular trading session

Related: Apple Q2 2018 earnings call transcript

 

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