Cupertino tech giant Apple has announced its fourth quarter results for 2018 today, reporting a revenue of $62.9 billion, up 20% over last year with a gross margin of 38.2%, up by 0.3% compared to last year. The company during the earnings call also revealed that it has surpassed the revenue estimated for Q4 2018.
Apple has reported an operating income of $16.1 billion, up by 22.9% compared to the previous year and due to the tax cuts, the net income was up 31.8% to $14.1 billion. The earnings per share increased by 41% to $2.91.
In a statement, Tim Cook, Apple CEO, said, "We're thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our two billionth iOS device, celebrated the 10th anniversary of the App Store, and achieved the strongest revenue and earnings in Apple's history.'
Coming to Apple's iPhone revenues, the iPhones continue to dominate a big chunk of Apple's revenue, however, due to the Q4 ending on September 29, only a small part of the new iPhone launches will be reflected in this report.
The iPhone revenues have increased by 29% to $37.2 billion, a significant increase from $29.9 billion in Q4 2017. The company's Average Selling Price of iPhones also increased to $793, up 28% from $618 in Q4 2017. The number of units showed a minor increase of 0.4% from 46.69 billion in Q4 2017 to 46.89 billion in Q4 2018.
Apple shipped 9.7 million units of iPad, a decrease of 6% from last year's 10.3 million units. In Q3 2018, Apple shipped 11.5 million units of iPads. Along with a decrease in shipments, iPads also witnessed a 15% drop in revenue, coming in at $4.1 billion. The previous generation Mac sales were down by 2% to 5.3 million units.
Apple has also announced that it will now stop reporting the unit sales of iPhones, iPad and Mac, claiming that these numbers are now less relevant.
Luca Maestri, Apple's Chief Financial Officer, said, 'As we have stated many times, our objective is to make great products and services that enrich people's lives and to provide an unparalleled customer experience so that our users are highly satisfied, loyal, and engaged. As we accomplish these objectives, strong financial results follow. As demonstrated by our financial performance in recent years, the number of units sold in any 90 day period is not necessarily representative of the underlying strength of our business. Furthermore, a unit of sale is less relevant for us today than it was in the past given the breadth of our portfolio and the wider sales price dispersion within any given product line.'