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$AAPL Special Event 2017: Apple launched its 10th anniversary special iPhone - iPhone X, which comes in two tones - space gray and silver. iPhone X comes with 5.8 inch Super Retina OLED Display, with a pixel density of 458ppi, highest in any iPhone. Importantly, there's no home button as many leaks suggested.
The iPhone maker $AAPL's revenue jumped 12.6% to $88.29Bil in 1Q18, though the number of iPhone units sold fell 1% YoY, thanks to the pricier iPhones that increased the company's margins. Japan had the highest growth in revenue of 26% followed by Rest of Asia Pacific, Europe & Greater China. $AAPL guided for 2Q18 revenue of between $60-62Bil.
Geographically for 1Q18, $AAPL showed good growth across all regions. Japan showed the highest momentum with revenue surging 26% YoY, while China revenue grew 11%, driven by higher sales of the company's premium smartphone iPhoneX. The company also reported that its active installed base of devices reaches 1.3Bil in January.
Spurred by the Republican tax reform, $AAPL said it would increase its direct contribution to the US economy to over $350Bil over the next five years. The tech giant expects to invest over $30Bil in capital expenditures in the US during this period and create over 20,000 jobs through hiring at existing campuses and opening a new one.
$AAPL CEO Tim Cook said, "If you look at the (iPhone) 8 and 8 Plus, when we launched them, they instantly became our top two selling products. If you look at 8 Plus in particular, for the period of time that we can measure to date, it has gotten off to the fastest start of any Plus model."
In 4Q17, $AAPL's revenue from Americas rose 14% and that from Europe rose 20%. While, a usual dark spot, Greater China region showed 12% growth, this was slightly offset by a 11% decline in Japan. In rest of Asia Pacific, revenue edged up 5%.
$AAPL retained investor confidence with its outlook for the holiday quarter. In 1Q18, the tech giant expects a record revenue of $84-87Bil, and gross margin between 38% and 38.5%. Apart from this, Apple said it anticipates operating expenses between $7.65Bil and $7.75Bil during this period.
Sending its shares up over 3% aftermarket, $AAPL reported 12% improvement in 4Q17 revenue to $52.6Bil, despite the fact that its priciest model has just hit the stores. Net income rose to $10.71Bil from $9.01Bil a year ago, while EPS jumped 24% to $2.07 per share.
For competitive environment, so far $T has seen some rational activity through $AAPL iPhone 8 launch and most recently activities that are going on, so it is optimistic. $T's margins are very solid. But $T believes it can compete and win based on product offerings and that extensive nature promotional activity is not necessary for iPhone X launch.