Forex sessions clock co
Timothy Donald Cook – Apple, Forex sessions clock co. Jim Suva – Citigroup Global Markets, Inc.
Good day everyone, and welcome to the Apple Incorporated Second Quarter Fiscal Year 2018 Earnings Release Conference Call. At this time for opening remarks and introductions, I would like to turn the call over to Nancy Paxton, Senior Director of Investor Relations. Good afternoon, and thanks to everyone for joining us. Speaking first today is Apple’s CEO, Tim Cook, and he’ll be followed by CFO Luca Maestri. After that we’ll open the call to questions from analysts. Please note that some of the information you’ll hear during our discussion today will consist of forward-looking statements, including without limitation those regarding revenue, gross margin, operating expenses, other income and expense, taxes, capital allocation, share repurchases, dividends and future business outlook.
Actual results or trends could differ materially from our forecast. For more information, please refer to the risk factors discussed in Apple’s most recently filed periodic reports on Form 10-K and Form 10-Q and the Form 8-K filed with the SEC today, along with the Associated Press release. Apple assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. I’d now like to turn the call over to Tim for introductory remarks. Thank you, Nancy, and to everyone joining us, welcome. We’re proud to announce the results of a very successful quarter today, setting new March quarter records for both revenue and earnings. 12 billion over last year, setting a new first half record and achieving our highest first half growth rate in three years.
Phone gained share during the quarter based on IDC’s latest estimates for the global smartphone market. Q2 was our best quarter ever for services and momentum there continues to be incredibly strong. 2 billion over last year’s March quarter. 30 million in the last 90 days alone, contributing to the overall increase in services revenue.
Apple Pay continues its strong growth with active users more than doubling and transactions tripling year-over-year. We believe the availability of Apple Pay at major transit systems have been a key driver of adoption among commuters and in March, we launched Express Transit with Apple Pay in Beijing and Shanghai, the second and third largest transit systems in the world. Apple Pay is already the most successful mobile transit payment system in Tokyo, which has the busiest transit system of all. With the launch of Brazil in April, Apple Pay is now available in 21 markets and we expect Norway, Poland and Ukraine to launch in the next several months. Looking at its revenue over the last four quarters, our wearables business is now the size of a Fortune 300 company.
Apple Watch had another great quarter with revenue growing by strong double digits year-over-year to a new March quarter record. Millions of customers are using Apple Watch to help them stay active, healthy and connected and they have made it the top selling watch in the world. We launched carrier support for Series 3 with cellular in Mainland China, Hong Kong and Thailand during the quarter with more markets on the way. And now with Watch OS 4. 2, there are more features than ever before. For example, in addition to tracking your workouts and heart rate, skiers and snowboarders can record runs, see vertical descent and calculate speed, as well as contribute data directly to the Apple Watch activity app. This product is a runaway hit, and we’re working hard to meet the incredible demand.
It empowers students to be even more creative and productive, from learning to code to sketching ideas and jotting down handwritten notes to marking up screenshots. In addition to our successful Everyone Can Code initiative, we’ve launched Everyone Can Create. It’s a new free curriculum that makes it fun and easy for teachers to integrate drawing, music, film making or photography into their existing lesson plans for any subject. We believe education is the great equalizer. And whether it’s through our coding programs, our unrivaled augmented reality platform, or the creativity both can unleash, we’re proud to help students everywhere reach new frontiers of learning with Apple technology. In March, we also released iOS 11.
3, a major update offering new immersive augmented reality experiences, access to personal health records in the Health app and more. The update to ARKit that made this possible came just six months after we launched the world’s largest AR platform. Consistent with our long-term focus, privacy is a key element of these initiatives for education and personal health. We’re relentless about making the best products and experiences in the world, while fiercely protecting our users’ privacy, because we believe privacy is a fundamental human right. Our environmental initiatives recently passed an important milestone. We work with communities around the world to build clean power sources.
Apple now has 25 renewable energy projects operational and 15 more under construction. We’re also driving our supply chain to use clean energy. 150 billion in revenue and double digit growth in all of our geographic segments. 34 billion in earnings in six months, and we’re very bullish on Apple’s future. We have the best pipeline of products and services we’ve ever had. We have a huge installed base of active devices that is growing across all products, and we have the highest customer loyalty and satisfaction in the industry. Our services business is growing dramatically.