Q2 2017 summary

On 2 May 2017 Apple reported its financial results for its fiscal second quarter of 2017, the quarter that ended 31 March 2017. Revenue and profit were up year on year, Mac sales were up, but iPhone sales were down.

Apple hosted a call with analysts from 5pm PT, which was 10pm in the UK. If you'd like to listen to Apple's earnings call, you can tune in here.

Here, you'll find out how many iPhones, iPads, and Macs Apple sold during those months, plus what the numbers actually mean - for you, for Apple's product portfolio, and for Apple's corporate health.

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Apple financial results Q2 2017: Summary

In terms of revenue, Apple surpassed last year's figures for the same quarter.

Apple posted revenue of $52.9 billion, compared to revenue of $50.6 billion in the same quarter in 2016.

This is slightly below the average expectation of analysts. Analysts had predicted that Apple would record $53.079 billion in revenue, while Apple's own prediction was for between $51.5 billion and $53.5 billion.

Apple reported a net quarterly profit of $11.0 billion ($2.10 per diluted share, compared to net quarterly profit of $10.5 billion (or $1.90 per diluted share) in the same quarter in 2016.

Gross margin was 38.9 percent compared to 39.4 percent in the same 2016 quarter. Gross margin was estimated by analysts to be 38.71%, Apple's own estimate was for between 38 percent and 39 percent. Gross margin is calculated by taking Apple's total sales revenue minus its cost of goods sold, divided by the total sales revenue. The higher the percentage the better and it suggests that Apple is very efficiently run.

Apple also declared an increased dividend payment of $0.63 per share, up from $0.57. Dividends are payable quarterly and the next is due on 18 May. This means that Apple now pays its shareholders the biggest dividend of any company in the world.

Apple's second financial quarter is typically slow in terms of Mac sales, though iPhone and iPad sales can still be good thanks to the relatively recent updates of those products. We examine how many iPhones, iPads, and Macs Apple sold below.

How does this compare with Apple's predictions?

When it announced its first quarter results earlier this year, Apple provided the following guidance for its fiscal 2017 second quarter, here's how the figures compare:

  • Revenue between $51.5 billion and $53.5 billion Actual: $52.9 billion
  • Gross margin between 38 percent and 39 percent Actual: 38.9 percent

How many iPhones did Apple sell?

As in 2016, Apple has seen another decline in sales of iPhones compared to the year-ago quarter. Apple attributed this to customers holding off buying a new phone in anticipation of the next model - thanks to rumours about the iPhone 7s or iPhone 8.

This year Apple sold 50.763mn iPhones during the quarter, which is less than the 51.193mn iPhones, sold in the same quarter of 2016. In the same quarter last year Apple saw a decline in iPhone sales compared to the same quarter a year before.

The average analyst estimate for iPhone sales was 52.21mn for the quarter. You can assess analyst expectations here: iPhone sales.

Apple may have sold fewer iPhones, but it made more revenue from the sales of the smartphone. The company sold 50.763mn iPhones and made $53.249bn in revenue. In the same quarter 2016 Apple sold 51.193mn iPhones, making $32.857bn in revenue.

During the analyst conference call Apple CEO Tim Cook revealed that the company had faced more demand for the iPhone 7 Plus than anticipated and supplies were constrained.

How many iPads did Apple sell?

iPad sales continue to fall year-on-year.

Apple sold 8.922mn iPads, making $3.889bn in revenue.

In the same quarter 2016 Apple sold 10.251mn iPads, making $4.413bn in revenue.

How many Macs did Apple sell?

Mac sales were up year-on-year.

Apple sold 4.119mn Macs, making £5.844bn in revenue.

In the same quarter 2016 Apple sold 4.034mn Macs , making $5.107bn in revenue.

How many Apple Watches did Apple sell?

Apple doesn't tend to release specific sales figures for the Watch, however, it does reveal the sales of 'other products' of which the Watch is one.

Other Products

Apple made $2.873bn in revenue from sales of 'other products', including the Apple Watch, AirPods, and the Beats products.

In the same quarter of 2016 Apple made $2.189bn in revenue from sales of 'other products'.


Services made Apple $7.041m in revenue. This beat analyst estimates that services revenue could reach $6.78 billion this quarter in comparison to last year's Q2 total of $5.991 billion.

The growth in this section is attributed to the growth of Apple Music.

Predictions for Q3 2017

Quarter three is generally a slow quarter for Apple. The company provided the following estimates for its fiscal 2017 third quarter:

  • revenue between $43.5 billion and $45.5 billion
  • gross margin between 37.5 percent and 38.5 percent
  • operating expenses between $6.6 billion and $6.7 billion
  • other income/(expense) of $450 million
  • tax rate of 25.5 percent