Tech giant makes history with record-breaking earnings and discontinuing a commission-based partner program.
Just two days after Apple’s announcement that their third-quarter earnings were 17 percent higher than one year ago, Apple makes history by becoming the first publicly traded U.S. Company to reach $1 trillion market value. The technology company broke the $1 trillion barrier when its stock reached the ‘magic’ share value of $207.05. Heading into Thursday’s trading session; Apple’s shares were up 19 percent in 2018, which has been driven by iPhone sales.
According to their financial results reporting from July 31, the company posted a quarterly revenue of $53.3 billion.
“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, Apple’s CEO. “Our Q3 results were driven by continued strong sales of iPhone, Services, and Wearables, and we are very excited about the products and services in our pipeline.”
“Our strong business performance drove revenue growth in each of our geographic segments, net income of $11.5 billion, and operating cash flow of $14.5 billion,” said Luca Maestri, Apple’s CFO. “We returned almost $25 billion to investors through our capital return program during the quarter, including $20 billion in share repurchases.”
Apple is providing the following guidance for its fiscal 2018 fourth quarter:
- revenue between $60 billion and $62 billion
- gross margin between 38 percent and 38.5 percent
- operating expenses between $7.95 billion and $8.05 billion
- other income/(expense) of $300 million
- tax rate of approximately 15 percent before discrete items
In addition to this positive financial growth message, Apple also announced that they will be shutting down their affiliate program for macOS and iOS App Stores. This announcement came in the form of an email to affiliate members.
“Thank you for participating in the affiliate program for apps. With the launch of the New App Store on both iOS and macOS and their increased methods of app discovery, we will be removing apps from the affiliate program. Starting on October 1st, 2018, commissions for iOS and Mac apps and in-app content will be removed from the program. All other content types (music, movies, books, and TV) remain in the affiliate program.”
In 2017, Apple cut the affiliate commission from 7% to 2.5% – lowering the incentive for people to recommend apps from the iOS/macOS App Store platforms. This move will have a substantial impact on publications who review apps and make suggestions based on their findings.