Apple have released their earning report for the first quarter of 2017, which bizarrely runs from October to the end of December 2016. iPhone and Mac sales are doing better, but with 69% of their revenue coming from iPhones and only 9.25% coming from Mac Sales, shows that Apple's emphasis is on the mobile sector and not on computers, and much less still in desktop machines.
Apple Q1 2017 Revenue
Apple has reported all-time record quarterly revenue of $78.4 billion which compare to revenue of $75.9 billion for the same period in the previous year with international sales accounting for 64 percent of the quarter’s revenue. Tim Cook, Apple’s CEO told us...
We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch. Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.
Apple is projecting the next quarter's revenue to be between $51.5 billion and $53.5 billion with a gross margin between 38 percent and 39 percent.
China Sales Disappointing
Looking at the revenue by territory, most parts of the world appear to have done reasonably well. Europe and the Asia-Pacific region had saw small but definite growth whereas Japan and the Americas saw a more significant growth, whereas China, saw sales fall.
iPhone On The Up
Although the iPhone sales surpassed Apple's all time unit sales it was largely down to sales of the iPhone 7 Plus although the the iPhone 6S didn't do as well as its small brother, the iPhone 6.
iPad Sales Drop
iPad sales on the other hand didn't do so well although that may be due to Apple not releasing a new iPad in the fall.
Mac Sales See A Turn Up
Mac sales have come back up after a number of quieter quarters, but a lot of this is due to sales of the new and more expensive MacBook Pro with its Touch Bar models.
Other Products On The Way Down
The Other Products category was down by 7.5% but as Apple doesn't break down the figures for this category we cannot analysis what contributed to this drop, but Tim Cook does say that the Apple Watch, which is in this category, has had its best quarter so far.
Services On The Up
Moving onto Services, which covers iCloud, Apple Music and the App and iTunes Stores saw an increase of 18.3% compared to the same period the previous year.
Apple's Priorities Clear
If anyone needed any more evidence as to where Apple's priorities lie and don't lie then these results should confirm it, with nearly 70% of the last quarter's revenue coming from iPhone sales compared to 9% coming from all Mac Sales, with the MacBook Pro playing a large part in that 9%.
Mac Pro Even More Unlikely
All of this makes the sales of desktop computers an even smaller slice of the cake, and based on these numbers I would be very surprised to see Apple produce a new version of the Mac Pro trash can and hopefully these figures confirm that there is no way Apple are ever going to produce a tower based computer that can take PCIe cards, it's just not going to happen.