Update: The stock continues to climb as the day progresses, now up 6.5% at around $129, which values the company at more than 670 billion dollars in market cap. It is also nearing Apple stock’s all time high of $135.

Last night, Apple reported all-time record earnings with revenue topping $78.4 billion, beating analysts consensus. The stock market investors appear to be pleased with Apple’s results; AAPL stock opened up more than 5%.

The company reported sales of 78.3 million iPhones, 13 million iPads and 5.3 million Macs. Spiking at over $127 this morning, Apple stock is once again close to its all-time high of $135 after rallying following Trump’s presidential victory.

The company announced that the holiday quarter, fiscal Q1 2017 or calendar Q4 2016, all-time revenue records for its iPhone, Services, Mac and Apple Watch businesses. Apple’s latest round of product releases featuring iPhone 7, Apple Watch Series 2, and the new MacBook Pro with Touch Bar appear to have been a hit.

The average selling price of the 78 million iPhones Apple sold was higher than ever before, at $695. On the earnings call, Tim Cook said that the product mix of iPhone 7 Plus compared to iPhone 7 was skewed towards the larger size more so than in the past. The higher starting price of the iPhone 7 Plus pushed overall iPhone ASP upwards.


Mac revenue was a nudge higher than the year-ago quarter but Apple said its new Mac, the MacBook Pro with Touch Bar, was supply constrained throughout and saw high demand. Apple does not disclose specific numbers for Apple Watch however Cook did announce record revenue and unit sales for the product.

Apple’s services businesses also continued to show strong growth, reporting $7.2 billion in revenues. Services constitutes things like Apple Pay, Apple Music, iCloud Storage upgrades and more. On the call, Apple announced a new target to double the size of the Services business over the next four years, implying it expects the division to continue to see 20% YOY growth.

Investors are clearly encouraged with these numbers although Apple’s guidance for the current quarter was not above consensus. Apple is predicting revenue between $51.5 and $53.5 billion. This would beat the year-ago quarter (Q2 2016 saw $50.6 billion revenue) and means Apple is not expecting negative revenue growth for the foreseeable future. The company will report next quarter’s earnings sometime in April.

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About the Author

Benjamin Mayo

Benjamin develops iOS apps professionally and covers Apple news and rumors for 9to5Mac. Listen to Benjamin, every week, on the Happy Hour podcast. Check out his personal blog. Message Benjamin over email or Twitter.