Bulletin: Apple Inc. Reports Strong Third-Quarter Earnings As Share Repurchases Ramp Up

SAN FRANCISCO (S&P Global Ratings) Aug. 1, 2018--Apple Inc.'s (AA+/Stable/A-1+) revenues rose 17% year–over-year in the third quarter to $53.3 billion, led by strong growth in the iPhones and services segments. iPhone sales jumped 20% to $41.3 billion year–over-year as average selling price (ASP) rose 20% to $724, despite only a 1% increase in units sold. This is due mostly to the inclusion of the high-end iPhone X. The services segment--which includes the App Store, iTunes Store, iCloud, Apple Music, and Apple Pay--continued to expand, rising 31% year–over-year to $9.5 billion. We view that growth as a credit positive as it provides software-like recurring revenue that over time will partly offset somewhat cyclical hardware sales, while generating significantly higher profit

...SAN FRANCISCO (S&P Global Ratings) Aug. 1, 2018--Apple Inc.'s (##+/Stable/A-1+) revenues rose 17% year¡over-year in the third quarter to $53.3 billion, led by strong growth in the iPhones and services segments. iPhone sales jumped 20% to $41.3 billion year¡over-year as average selling price (ASP) rose 20% to $724, despite only a 1% increase in units sold. This is due mostly to the inclusion of the high-end iPhone X. The services segment--which includes the App Store, iTunes Store, iCloud, Apple Music, and Apple Pay--continued to expand, rising 31% year¡over-year to $9.5 billion. We view that growth as a credit positive as it provides software-like recurring revenue that over time will partly offset somewhat cyclical hardware sales, while generating significantly higher profit margins than those of hardware products. The company's operating cash flow was $14.5 billion for the quarter. Dividends and share repurchases totaled $25 billion, significantly higher than a year ago and consistent...

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