Spurred by $54.4 billion in iPhone sales alone, Apple Q1 2017 revenue topped the $78 billion mark—a record quarter for the company, and better than the Wall St. expectation of $77.25B.
Apple announced Q1 2017 earnings on Tuesday; all product lines (iPhone, iPad, Mac, Services, and “Other”) saw quarterly increases, with iPhones (fueled by the release of the iPhone 7 & 7 Plus) leading the charge in revenue growth. The company’s “Services” division, which includes the App Store, AppleCare, & Apple Pay, has had the biggest year-over-year change at 18%.
Much of the subsequent earnings call was spent discussing Apple’s growth in China. The iPhone 7 was the biggest selling phone in that country during the quarter, and China was Apple’s third largest market behind the US & Europe.
Not surprisingly, iPads faired the worst of all the product lines for Apple in Q1 2017. Though revenue on the tablets increased 30% between Q4 and Q1, year-over-year, sales were down nearly 20%. Revenue on “Other” products was also down YoY (8%)—this includes the Apple Watch & Beats products—though, changes in pricing on the original version of the Watch and the sheer volume of items that fall into this category makes it hard to analyze. Worth noting: “Other” was up 70% QoQ.
This is the second record-setting announcement Apple has made in the month of January. On the first day of 2017, the company set a single-day record for App Store revenue, with $240 million in downloads across all devices. This benchmark day followed a year in which a full third of all App Store revenue, ever, was realized. On the earnings call, Tim Cook noted that Apple’s “Services” line, which the App Store falls under, will “be the equivalent of a Fortune 100 company” in 2017.