Apple Reports Record First Quarter Results, High Demand for iPhone 7 Plus

Apple is back in form as it announced financial results for its fiscal 2017 first quarter ending December 31, 2016. The Company posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

The iPhone maker reported quarterly earnings and revenue that easily beat analysts' expectations on Tuesday, but gave future guidance on the lower end of expectations.

“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,” said Tim Cook, Apple’s CEO. “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.”

“Our outstanding business performance resulted in a new all-time record for earnings per share and over $27 billion in operating cash flow,” said Luca Maestri, Apple’s CFO. “We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments under our capital return program to over $200 billion.”

There was especially strong demand for the iPhone 7 Plus —Apple's higher-end model — and that it made up a higher-than-expected share of sales. The average selling price of phones grew to $695 during the quarter.

The Mac also returned to growth and posted its best sales ever.

Shares rose more than 3 percent after hours. Apple's board of directors also declared a cash dividend of 57 cents per share.

The world's biggest company had a massive cash pile of $246.09 billion during the quarter — larger than Sri Lanka's estimated 2016 gross domestic product — and $27 billion in operating cash flow.

Cook has attributed the company's expected return to growth iPhone 7, but also to growth in services revenue and a "very bullish" long-term future in China, where sales fell 12 percent in the first fiscal quarter.