Apple beats Street with best June quarter ever

Apple today announced financial results for its fiscal 2018 third quarter ended June 30, 2018. The Company posted quarterly revenue of $53.3 billion, an increase of 17 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.34, up 40 percent. International sales accounted for 60 percent of the quarter’s revenue.

“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, Apple’s CEO, in a statement. “Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline.”

“Our strong business performance drove revenue growth in each of our geographic segments, net income of $11.5 billion, and operating cash flow of $14.5 billion,” said Luca Maestri, Apple’s CFO, in a statement. “We returned almost $25 billion to investors through our capital return program during the quarter, including $20 billion in share repurchases.”

Summary Data:
• iPhone: 41.3 million units (+1% YOY), $29.906 billion revenue (+20% YOY)
• iPad: 11.553 million units (+1% YOY), $4.741 billion revenue (-5% YOY)
• Mac: 3.720 million units (-13% YOY), $5.330 billion revenue (-5% YOY)
• Services: $9.548 billion (+31% YOY)
• Other Products: $3.740 billion (+37% YOY)

Services includes revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services. Services revenue in the third quarter of 2018 included a favorable one-time item of $236 million in connection with the final resolution of various lawsuits.
Other Products includes AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories.

Apple is providing the following guidance for its fiscal 2018 fourth quarter:

• revenue between $60 billion and $62 billion
• gross margin between 38 percent and 38.5 percent
• operating expenses between $7.95 billion and $8.05 billion
• other income/(expense) of $300 million
• tax rate of approximately 15 percent before discrete items

Apple’s board of directors has declared a cash dividend of $0.73 per share of the Company’s common stock. The dividend is payable on August 16, 2018 to shareholders of record as of the close of business on August 13, 2018.

Apple will provide live streaming of its Q3 2018 financial results conference call beginning at 2:00 p.m. PDT on July 31, 2018 at This webcast will also be available for replay for approximately two weeks thereafter.

Here’s what Wall Street expected:

• EPS: $2.18 (Thomson Reuters consensus estimates)
• Revenue: $52.34 billion (Thomson Reuters consensus estimates)
• iPhone: 42M units for $29.14 billion (FactSet)
• iPad: 10M units for $4.6 billion (FactSet)
• Mac: 4M units for $5.77 billion (FactSet)
• Software & Services: $9.21 billion (FactSet)
• “Other product”: $3.68 billion (FactSet)

MacDailyNews Take: Let the good times roll!


  1. Mac sales took a hit year over year but that’s probably due to the keyboard issue dampening sales and the fact that there were no MacBook.x introductions at WWDC like there were in 2017.

    1. I doubt it had anything to do with the keyboard. That is overblown. It has to do with nothing really new in the general consumer market. I only refreshed my 2014 iMac at work because I could. At home, I have no reason to (nothing out there to justify cost of replacing perfectly functional machine).

    2. Good call, though, on the MacBook Pro 2017 introduction issue. That’s the explanation the Apple CFO gave in the conference call for the 13% YOY sag in 3rd quarter Mac unit sales. This quarter, there are already new Macs (at a higher price) and there could be more before the end of September.

  2. Yes, the declining Mac sales are the result of Clueless Cook. They would be much higher if Apple did not neglect the core of Apple business, year after year …

    1. The “core of Apple business” only generates 10% of its revenue. Apple has an increasing share of a declining PC market. I don’t think you can blame Tim Cook for a steady fall in unit sales industry-wide since 2012.

      1. Yes, Cook is the problem. Years ago quarter after quarter the Mac was the top seller for years. It ended under Cook neglect of the Mac. Got that, Apple apologist? …

        1. Wow! Talk about rewriting history. The Mac has never been the top seller in the PC market. Steve Jobs was fired in 1985 for poor sales, and even before Windows 95 the Mac never enjoyed close to a 10% market share.

          Prior to the Tim Cook era, Apple was in the top five for the last time in 1996. It had a market share then, by units, of less than 6% (which eventually fell to 2.7%).

          It took nineteen years for Apple to rise back to #5 with a 7.2% share in 2015, three years after Steve Jobs died and Tim Cook took over. Last year, Mac share was up to #4 in traditional computers (and iPad crushed the tablet computer competition).

          Got that, Tim Cook basher?

            1. Sigh… try Google. If you still don’t believe you can probably find the information elsewhere. TxUser is not lying. Apple has always been a premium brand, selling premium computers to a premium clientele. Apple has no interested in selling the cheap crap necessary be be number 1 among computer manufacturers.

            2. Try to leave yourself some wriggle room for misunderstanding.

              Perhaps you’re confusing Mac sales GROWTH, which has outpaced PC sales growth for years; with Mac sales, which are still a fraction of the market. Typically Apple has been around 5th in sales.

            3. Actually YOU LIE pretty much at will, as per this you posted last weekend accusing one of MDN’s most factually correct, least provocative posters…
              “You come here daily with political vitriol lying and POSING as a conservative — denigrating and insulting ANYTHING Republican, particularly our hard working president.

              Hypocrite …”
              I challenged you to cite just one instance of vitriol posted by TxUser…ever. You didn’t and can’t.
              How about acting your age and admitting you were wrong. Fees up. Be a man and not a snivelling snowflake coward.

            4. You want proof? First off I am NOT your boy — do your own homework.

              USER, the perfect snide name, has political posts denigrating everything conservative and Republican, while defending everything Democrat, going back three years or more.

              Spare us the IGNORANCE, you can read …

            5. GoeB
              THAT’S. NOT. HOW. IT. WORKS.
              /i> made the accusation.
              /i> called TxUser a liar.
              /i> made three ad hominem comments including hypocrite.
              So…/i> …at the risk of totally and publicly shredding what passes for your credibility these days…must provide that proof. I’m pretty sure you have transgressed MDN’s posting policy. Your choice.
              If there are so many instances over the years, it should be easy.
              THAT’S. HOW. IT. WORKS.

            6. What a pathetically miserable sad sack excuse. So you have no honour, conscience, respect for the truth or courage of your own convictions. Instead, just a blustering blowhard’s worthless excuses for your own failings.

      2. So a larger screen iMac 32″ 36″ or rackable Mac or a tower Mac wouldn’t add 2 million more Mac’s in a quarter, I’m setting on a 2011 iMac and want to buy a new Mac, that is a real upgrade not a side step.

        1. I am in the same holding pattern waiting for 2019. They fall short, adios Apple for good.

          The Apple apologists here are just that. If Apple offered every single Mac better than all PCs out there, sales would boom.

          So the question remains are they competent or incompetent …

          1. Of course they wouldn’t there is an inbuilt PC only market out there (for both good and bad reasons) that would never allow a Mac better or otherwise to become the top seller. That’s always been the case and Apple can only chip away at that ingrained market to increase sales. That doesn’t defend the case that they have been slow to upgrade Macs which is a disgrace but that has nothing to do with your fantasy land of out selling all PCs that you tried to peddle in delusion above and to which I note you ran away from when you realised how silly you were sounding. Its not about being an apologist its about basic historical facts.

            1. Running away? Whatever.

              All I am saying is the largest, richest company in tech history should offer the BESTEST computers ever built. They charge a premium Apple Tax for style — NOT PERFORMANCE.

              To go out and buy a Pro PC that is roughly twice as fast for half the cost is an Apple DISGRACE! Apple has more than enough resources to get this done. Every user and fanboy should be demanding it!!! …

  3. Celebrate today! Apple deserves it!


    Tim Cook, Apple’s CEO, in a statement. “…we are very excited about the products and services in our pipeline.”

    I am not so certain we will be celebrating tomorrow. Tim has lost a lot of my trust.

    1. Yes he says that every damn year at every opportunity for the first 7 months of the year. Rarely does what he deems excitement traverse the gap to our reality. Safe and sound is his mantra though not sure the latter applies anymore and safe can lead you into being yesterdays business if you persist in it to much and for too long once that reputation for innovation and quality dissipates and it can go very quickly once perception starts to fade.

  4. “Mac: 3.720 million units (-13% YOY), $5.330 billion revenue (-5% YOY)” .

    When will little timmy wake up and realize people are starting to stop buying his over priced old tech macs? It takes no effort to build a capable box.

    It’s not like you’re redesigning the imac it’s been the same form factor for years, he just keeps putting old tech in it every 5 years and charging a fortune for under preforming machines.

    1. Exactly. This is so simple to FIX and for whatever reason Cook is clueless, negligent, tone deaf and letting us DOWN year after year. The sooner he is replaced, the better …

    1. Since the first Apple computer was released decades ago that has remained Apple’s core.

      Certainly, the 10-year old Johnny come lately iPhone is the core of Apple profit for years.

      But not the HEART of the company …

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