Apple just announced its fiscal first quarter 2017 earnings. The Wall Street consensus was calling for an earnings per share of $3.21 on quarterly revenue of $77.38 billion, according to Thomson Reuters. Apple reported an EPS of $3.36 on revenue of $78.4 billion, beating Wall Street’s expectations on the top and bottom.
During fiscal Q1 2016, Apple sold a record 74.8 million iPhones, 16.1 million iPads and 5.3 million Macs. Apple sold 78.3 million iPhones during fiscal Q1 2017, marking another record quarter. Apple sold 5.4 million Macs, up a hair from the year-ago quarter and 13.1 million iPads, another decline.
Speaking with CNBC, Apple CEO Tim Cook called it a “dynamite quarter,” and said more Android users are switching than ever before.
“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way,” Apple CEO Tim Cook said. “We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch. Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”
Apple said it expects fiscal Q2 revenue to fall between $51.5 billion and $53.5 billion.
My quick take
There are a couple of big takeaways here. First, a record iPhone quarter is huge, especially considering that people love to consider that Apple’s iPhones are losing their luster. Second, Apple hasn’t ever discussed Apple Watch sales and while we don’t get them here, it’s a hair surprising that the Apple Watch still set records during the holidays. No huge surprise on services given the increase in device sales tends to drive people to using the iTunes App Store.
Apple closed the day at $121.35 and is currently up 2.56 percent in after-hours trading at $124.46 on the solid earnings report.