Apple executives read financial statements: pay users exceed 300 million

Apple executives read financial statements: pay users exceed 300 million

Sina Technology News Beijing time on August 1st morning news, Apple Corp today released the 2018 fiscal year third quarter results. The report showed that the net revenue of the Apple Corp in the third quarter was $53 billion 265 million, up 17% from $45 billion 408 million in the same period last year, and net profit of $11 billion 519 million, up 32% from the same period of $8 billion 717 million last year. Among them, the third quarter revenue in Greater China was US $9 billion 551 million, an increase of 19% over last year's US $8 billion 4 million.

After the announcement, Apple CEO Tim Cook and CFO Luca Maestri attended a teleconference to read the main points and answer analysts'questions.

The following is the main content of this conference call Q & a session.

Katy Huberty, an analyst at Morgan Stanley: the first question asked Tim, the company has achieved the target of service revenue earlier than the original plan. What are the plans for the next three to five years? There is a problem for Luca. This year, the price of NAND flash is falling and the price of service is rising. This should have a positive impact on the profit margin of the company, and the earnings of the company show that the company's gross interest rate is still around 38%. What is hindering the increase of the company's profit rate? Will the company's profit margin rise in the next one or two quarters?

Tim Cook: the company is very pleased with the results of its revenue and its revenue performance is satisfactory. Service revenues in all countries and regions showed double-digit growth. App Store application stores, AppleCare technical support services, Apple Music music services, iCloud cloud services and Apple Pay payment services have been recorded, with more than 300 million paid users.

At present, the growth momentum is good. As for the next stage of development, we are pleased to see the new services that the company is developing and will launch in the future, in addition to all kinds of services. On the whole, we are pleased to achieve our goals and even do better than expected.

Luca: let me first introduce the company's return on the third quarter of fiscal year 2018 in June 30th, and then make a forecast for the next quarter, and provide some general observations for the future development. In general, the third quarter profit margin will be a ring-on-ring decline, last year's third quarter than the second quarter fell 0.4%, down 1.4% the year before. The gross margin of the third quarter is flat. Because of seasonal factors, the company still lacks some positive factors that can promote growth in the third quarter of this year, but these negative factors are offset by improving cost control. In addition, the rate of exchange rate changes in the third quarter is beneficial to the company, but because of the recent appreciation of the dollar, we do not think that this favorable effect will appear again in the fourth quarter. I'm glad to see that the profit margin in the third quarter can be flat.

Based on current data, we expect profit margins to remain flat in the fourth quarter. The fourth quarter is usually a product transition cost, and we expect an appreciation of the dollar to lead to a 0.3% decline in the fourth quarter profit margin, while our revenue forecast and service portfolio for the fourth quarter can offset these two adverse factors. We will not predict the profit margin of the later quarter, but based on the past performance, the company is good at making a profitable business decision to balance the revenue and profit margin of the business. Over the past three years, exchange rate fluctuations have had a negative impact on Apple's operations, but the company has successfully coped with this negative factor. On the storage side, yes, prices have fallen. Storage prices have been a constraint for the past year to a year and a half, and are expected to improve in the future. (Tian Heng)

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