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Apple Has Record-Breaking September Quarter with $62.9 Billion in Revenue

Apple reported $62.9 billion earlier this month, with $37.2 billion in revenue from the sales of 46.9 million iPhones


Image via Apple

Image via Apple

“We’re thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our 2 billionth iOS device, celebrated the 10th anniversary of the App Store and achieved the strongest revenue and earnings in Apple’s history,”
— Tim Cook, Apple CEO

Apple’s sales results beat records and forecasts for the past three-month period for the last quarter of 2018, the highest growth rate in three years with earnings-per-share of $2.91 growing per year. All-time quarterly records were made with $62.9 billion is a year-on-year increase from $52.6 billion last year. Apple shipped out 46.9 million iPhones during the September quarter, with revenue up to $37.2 billion, increasing year after year.

The average selling price or ASP of the iPhone is $793, going up from the $617.99 ASP from just one year ago in 2017. Premium pricing for the Phone X, iPhone XS, and iPhone XS Max has been driving the ASP increase. Analysts estimate that Apple would sell 47.5 million iPhones in the fourth quarter within the range of 46.7-48.1 million.

Apple provided live streaming for its Q4 2018 financial results conference call on November 1, 2018. The webcast is available for replay for up to two weeks after.

“We concluded a record year with our best September quarter ever, growing double digits in every geographic segment. We set September quarter revenue records for iPhone and Wearables and all-time quarterly records for Services and Mac.”
— Luca Maestri, Apple’s CFO

iPad, Mac and Services Revenue

The iPad raked in $4.1 billion in revenue with 9.7 million units sold, lower than analyst expectations of 10.5 million for the quarter. Mac revenue was $7.4 billion, higher than a year ago. Apple services has grown to $10 billion, up from $8.5 billion in 2017 for the same quarter. The Services arm keeps growing fast with analysts expecting ongoing growth in the future.

Consolidated Financial Statements

Data Summary

Changes in Reporting for 2019

Apple surprised many when the company also announced that they would no longer be reporting iPhone, iPad and Mac unit sales in earnings reports. This surprised many analysts given that this data was used as an indicator of growth and ASP calculations. However, the decision makes sense when iPhone sales are slowing down, while ASPs keep going up.

Apple will report revenue, sales growth, and guidance as before. However, given that a unit of sale is very different today than it was eleven years ago, sales of Apple products do not represent completely the product’s business health.

“A unit of sale is less relevant today than it was in our past.”
— Luca Maestri, Apple CFO


Pricing varies by a larger range today such as the iPhone ranging from $449 (iPhone 7) to $1,449 (iPhone XS). Maestri also pointed out that segment competitors do not provide unit sales.  

For First Quarter of 2019

Analysts expect the first quarter of 2019 to also best records, with Apple predicting revenues of $89-$93 billion with gross margin between 38-38.5 percent. Operating expenses are expected at $8.7-$8.8 billion, while a tax rate of approximately 16.5 percent is expected.


tags: Apple News, investor, earnings, iPhone, iPad, Mac, Services, Luca Maestri, tim cook
categories: Apple News
Friday 11.09.18
Posted by Elf
 

Having a Creative Career and Making an Impact

creative

We live in an incredible time. Art and science intersect in new, profound ways. Technology has also become more accessible, allowing for the widespread adoption of new ideas faster than ever before. 

Like many other tech founders, Steve Jobs, founder of Apple, could have kept his company solely within the technology space. Instead, he said that a great business lay at the intersection of liberal arts and the sciences. This vision and foresight is so apparent today at Apple through its product line that has helped unleash the creative power and potential of so many individuals across the world.

For anyone interested in a creative career, the swift changes happening today as art and science mesh and interact in new ways, is also very exciting.

Having the ability to create - whether it is writing, designing, drawing, coding, teaching, research, playing music or inventing a new product or service - is a wonderful gift. Being able to apply that in a way that is meaningful can also offer you tremendous fulfillment.

The creative class, a term coined by Richard Florida, accounts for 1/3 of the workforce and earns over 1/2 of the nation's wages.

An economist and social scientist, Richard Florida came up with the term creative class in his book The Rise of the Creative Class to constitute people who were working in professions where they constantly create and "fully engage in the creative process." (2002, pg. 69). This includes a large variety of occupations including science, computer programming, engineering, research, education, arts, design and media.

This class is also responsible for creating entirely new jobs that did not exist even five to ten years ago. The demand for these positions is accelerating today. In fact, an extensive study by the World Economic Forum revealed that as high as 65% of children entering primary school today will be in jobs that do not yet exist. 

Future of Jobs Report, World Economic Forum 2018

Future of Jobs Report, World Economic Forum 2018

So how do you build a creative career that uses your abilities and offers you ways to make an impact?

We've got a few ideas. :) 
 

1. Have Purpose
Work that has meaning, resonates with you. Having purpose in what you do, is both a grounding experience and an empowering one. From that place, you grow aware of your strengths and abilities and learn how you can contribute effectively. You also become part of something bigger than yourself. Purpose gives meaning to your work.

Apple CEO Tim Cook recently shared in his commencement address to MIT graduates how working at Apple gave him purpose he was seeking. He also encouraged graduates to "use your minds and hands — and your hearts — to build something bigger than yourselves." Tim also asked this great question, "How will you serve humanity?"
 

2. Allow Yourself the Freedom to Experiment and Fail
It may be hard to believe but when Thomas Edison was in school, his teachers considered him not intelligent enough to learn anything. Edison thankfully did not take this to heart. His persistence in work was remarkable. Edison failed 1,000 times before he finally succeeded in inventing the light bulb, one of the greatest inventions of modern society. So many entrepreneurs and inventors have failed multiple times over a long span of time before they ultimately found success in their ideas. During his 84 years, Thomas Edison went on to acquire 1,093 patents, inventing the phonograph, the  incandescent light bulb and one of the first motion picture cameras. Edison also created the first industrial research laboratory in the world. What would have happened if he just gave up?

We like Edison's mindset to keep experimenting and not giving up, where you allow yourself the ability to fail and make mistakes and try again! This gives you the freedom to begin and to try out new ideas. The freedom to experiment is often where the best ideas and solutions come from. We value both experimentation and giving each person working at Elf the freedom to think independently. A great example of this in action is Gmail, in use by 1.2 billion people as of July 2017 and by 25% of the American workforce, that was created by a Google employee Paul Buchheit during the 20 percent time given to employees every week to experiment and create their own ideas. Many apps today come out of experimentation and responding to problems that people perceive and wish to address. 
 

3. Keep a Solution-Oriented Design and Engineering Mindset
We love designing at Elf. We also have found that having a design and engineering mindset helps us solve client problems. We go in with a clear goal to solve problems and to come up with winning solutions, and then we go and accomplish that. This mindset can be applied to anything though. It is not limited to digital creative work.

Often in creating intellectual property and designing innovative experiences for clients, we have discovered that we are also transforming their existing businesses. Looking at a problem in a new way can also help identify and then address previously unmet customer needs. This in turn, also engage new customers and help expand our clients' customer base and audience.

We think that many of the global problems that we see today are design problems - problems that can be solved! By using your mind in new creative ways, who knows - maybe you will be the individual who rises to the challenge and helps design and engineer a solution to an existing problem!
 

4. Be Original
Creativity demands originality. To do something original, you create something that has never been done before. It is unique to you. This is often the main reason you wish to be in a creative profession - you have a deep desire to express your own ideas.


5. Be Skilled, Love Craftsmanship and Strive for Excellence
Creating anything of value requires a desire to excel. It draws upon your skills (innate and learned), a love of craftmanship, beauty and precision. You care about the work you do and contributing at a higher level. You own your work and you want to create value.


6. Help Others
We've found in helping others, that we grow too. At Elf, we have a couple of different initiatives that we have done over the years. Our magazine Hayden's has grown significantly over the years since its founding in Dec 2008 to become a 9 M+ global community. By sharing the works of visual artists and musicians, we've learned a lot as well. It is an enriching and inspiring experience.

Additional ideas in the works include an accelerator to help graduating high school students build out new business ideas while they are at college and a hack-a-thon series that we are just beginning in 2017. We also host portfolio reviews periodically with Behance to encourage aspiring creatives within our local communities both here and abroad at our office in London, England.

Through all of our events and community endeavors, we've noticed some common threads. Creative people consistently seek out:

- high quality experiences
- opportunities to excel and collaborate
- open environments for learning
- opportunities to validate their creativity
- recognition and appreciation for their work
- opportunities to be creative in other ways (lifestyle and recreational choices)
- inclusive and tolerant environments
 

7. Employ Creative Thinking
Being original could be a small thing, spinning off an existing idea, product or service or a small improvement that improves a product or service. As a designer, it could be in the way you take a complex idea and present it effectively in one illustration.

It can also be a very big disruptive idea, resulting in businesses that completely upend industries through innovative approaches to meeting customer needs.

The sharing economy is an example of a big disruptive idea. AirBnB revolutionized the travel lodging industry by offering a way for people to rent out their homes without actually owning or controlling at least a stake in all the rental properties in question (like prior practice). Uber also changed the transportation industry in a similar way. This shift from an asset-driven economy to a sharing economy is happening across many industry sectors.

When you have got a big disruptive idea, you may not have any benchmarks or relevant industry data to learn from. You are essentially creating something entirely new that has not been done before. You need courage and determination to do this despite the unknowns that you may face.

You can also create a spinoff or variation of an existing idea that has been met with great customer success. The meal delivery service industry is a good example of this. Blue Apron was one of the first companies to offer packaged weekly meals delivered to your home, saving you time going to the grocery store while helping you stay healthy and teaching you how to cook. Since then, many companies now offer this. Some provide additional options like paleo, gluten-free or other dietary choices such as SunBasket and yet others provide even pre-cut vegetables like Terra's Kitchen. In the car rental and transportation industry as well, companies like Lyft and locally based businesses have now developed models similar to Uber but with their own differentiating factors (better customer service, quality of vehicles) that make them stand out.

We don't expect you to come up with a new idea for a new business product or service when you arrive or even while you work at Elf. What we do want to see though is curiosity, a desire to experiment, a willingness to collaborate and an internal drive and passion for excellence.

On a last note, we have remarkable opportunities available today to us to create new innovations and to see things in new ways. This also allows for more individuals to share their ideas and creativity, which in turn, leads to inclusivity and bringing people from different industries and backgrounds together.

We're excited by this and what we can do to contribute to our society and the world, in both big and small ways. We hope reading this inspires you to grow and to become all that you can be.


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tags: creative career, elf agency, purpose, impact, design, coding, writing, science, art, steve jobs, edison, tim cook, creative people, creative jobs, opportunities, growth, mindset, design thinking, engineering
categories: Elf News & Case Studies
Sunday 06.18.17
Posted by Elf
 

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