Apple has reported quarterly revenue of $61.1 billion, up 16% over last year with a record Q2 net profit of $13.8 billion, up 25.4% YoY in their earnings for the financial year Q2 2018 that ended March 31, 2018. During earnings call Tim Cook said that the growth was broad-based, with iPhone revenue up 14%, services up 31% and wearables up almost 50%. He said that the company grew in each of its geographic segments, and in Greater China and Japan, revenue was up more than 20%.
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. “Since we split the line with the launch of iPhone 6 and 6 Plus in 2014, this is the first cycle in which the top of the line iPhone model has also been the most popular,” said the CEO.
Q2 was the company’s best quarter ever for services with $9 billion revenue, up more than $2 billion over last year’s March quarter. Apple also posted all-time record revenue from the App Store, from Apple Music, from iCloud, from Apple Pay and more.
Across all its services, paid subscriptions surpassed 270 million, up over 100 million from a year ago and up $30 million in the last 90 days alone, contributing to the overall increase in services revenue. Apple Pay continues its strong growth with active users more than doubling and transactions tripling year-over-year.
Apple sold 52.2 million iPhones, up 3% YoY, and iPhone sales was in double digits in several markets including Japan, Canada, Switzerland, Turkey, Central and Eastern Europe, Mexico and Vietnam. Apple sold 9.1 million iPads, up from 8.9 million a year ago. iPad sales grew strong double-digits in many markets, including Japan, in Latin America, Middle East and Africa and Central and Eastern Europe.
Apple sold 4.1 million Macs in the quarter, compared to 4.2 million a year ago. Apple said that it saw year-over-year growth in many emerging markets including Latin America, the Middle East and Africa, Central and Eastern Europe and India. It also saw double digit growth in its active installed base of Macs to a new all-time high, with almost 60% of March quarter purchases coming from customers who are new to Mac.
Its wearable business, which includes Apple Watch, Beats and AirPods posted combined revenue of almost 50% year-over-year. Apple Watch revenue grew in double digits year-over-year to a new March quarter record.
Services business saw all-time record revenue of $9.2 billion, up more than $2 billion from last year, an increase of 31% and double the services revenue Apple generated in the March quarter just four years ago. Revenue were up more than 25% year-over-year in each of its five geographic segments.
Apple expects revenue between $51.5 billion and $53.5 billion and gross margin between 38 and 38.5 percent for FY Q3 2018.