This Week's Sponsor:


Ensure that if a device isn’t secure it can’t access your apps.  It’s Device Trust for Okta.

Apple Q2 2017 Results: $52.9 Billion Revenue, 50.8 Million iPhones, 8.9 Million iPads Sold

Apple has just published its financial results for Q2 2017, which covered the period from January 1, 2017 through to April 1, 2017. The company posted revenue of $52.9 billion with a quarterly net profit of $11 billion. Apple sold 8.9 million iPads, 50.8 million iPhones, and 4.2 million Macs during the quarter.

“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.”

Estimates and Expectations for Q2 2017, and the Year-Ago Quarter (Q2 2016)

Apple’s revenue guidance for Q2 2017 fell between $51.5 billion and $53.5 billion, with gross margin estimated to be between 38% and 39%.

Going into today’s earnings call, Forbes reported that:

Apple is expected to report earnings of $2.01 per share, up from $1.90 in the same period last year, on revenue of $52.61 billion, according to consensus third-party analyst estimates. In the last quarter, it reported all-time record quarterly revenue on strong holiday results, with international sales accounting for 64% of the quarter’s revenue, according to its earnings press release.

The big focus this quarter is on the company’s flagship smartphone products. iPhone sales are expected to increase 4.3% from a year ago, according to Wall Street estimates. In the previous quarter, Apple benefited from a rise in average selling prices, jumping to $695 from $619 in fiscal Q4. The company attributed the increase to a “very strong product mix and the amazing success of iPhone 7 Plus” on its earnings call.

In the year ago quarter (Q2 2016), Apple earned $50.6 billion in revenue, and $10.5 billion in profit. During that quarter Apple sold 51.2 million iPhones, 10.3 million iPads and 4 million Macs.

Notes from the Call

Services revenue tops $7 billion again.

App Store revenue up 40% year-over-year and the number of developers is up 26%.

380,000 messages sent per second during the Super Bowl from Messages app.

Gains in market share for the Mac driven by new MacBook Pro and investing aggressively in the Touch Bar feature.

Apple Watch sales doubled year-over-year.

98% customer satisfaction for AirPods and demand exceeds supply.

Revenue from wearables (Apple Watch, Beats, and AirPods) was the size of a Fortune 500 company.

Apple Retail is debuting new experiences to customers like the Dubai Mall store.

Apple spent over $50 billion on US suppliers in the last fiscal year.

iPad sales beat Apple’s expectations.

Apple is raising its dividend to $0.63/share and extending its stock buy-back program to March 2019.

Q3 2017 guidance of $43.5 to $45.5 billion in revenue, gross margin between 37.5 and 38.5%, and operating expenses of $6.6 - $6.7 billion.

Tim Cook explains that 7 of top 10 trafficked retail stores are in Greater China, but performance was hurt by a 5% devaluation in currency.

Apple Q2 2017 on Twitter:

Below, we’ve compiled a graphical visualization of Apple’s Q2 2017 financial results.

Unlock More with Club MacStories

Founded in 2015, Club MacStories has delivered exclusive content every week for over six years.

In that time, members have enjoyed nearly 400 weekly and monthly newsletters packed with more of your favorite MacStories writing as well as Club-only podcasts, eBooks, discounts on apps, icons, and services. Join today, and you’ll get everything new that we publish every week, plus access to our entire archive of back issues and downloadable perks.

The Club expanded in 2021 with Club MacStories+ and Club Premier. Club MacStories+ members enjoy even more exclusive stories, a vibrant Discord community, a rotating roster of app discounts, and more. And, with Club Premier, you get everything we offer at every Club level plus an extended, ad-free version of our podcast AppStories that is delivered early each week in high-bitrate audio.

Choose the Club plan that’s right for you:

  • Club MacStories: Weekly and monthly newsletters via email and the web that are brimming with app collections, tips, automation workflows, longform writing, a Club-only podcast, periodic giveaways, and more;
  • Club MacStories+: Everything that Club MacStories offers, plus exclusive content like Federico’s Automation Academy and John’s Macintosh Desktop Experience, a powerful web app for searching and exploring over 6 years of content and creating custom RSS feeds of Club content, an active Discord community, and a rotating collection of discounts, and more;
  • Club Premier: Everything in from our other plans and AppStories+, an extended version of our flagship podcast that’s delivered early, ad-free, and in high-bitrate audio.