Apple 1Q - biggest ever

On Thursday Apple reported their 1Q numbers. This is their most important quarter because it covers the Christmas shopping season. Over the last three months, Apple had revenues of $88 billion, making it their biggest quarter ever! For comparison, that is roughly the size of Sri Lanka or twice the size of Ghana. Apple sells more in three months than the Ghanaian economy produces in two years!

Here is a breakdown of each division:



The iPhone still makes up 70% of Apple's revenue, which is why it trades on a conservative 16 multiple. The division to get excited about is their services division, which we believe is the future of the company. It grew 18% over the last year and now is their second biggest seller.

What about all their cash? Currently, their net cash position is $163 billion, which Apple says "Our target over time is to take that $163bn down to approximately zero. All that cash will be deployed for capital allocation". Which means a combination of M&A, dividends and share buy-backs? Will a Netflix or Tesla purchase be on the cards?