Notes of interest from Apple's Q3 2018 conference call

The numbers: Apple's revenue for the third quarter of the fiscal year 2018 hit $53.3 billion, with it and the earnings-per-share of $2.34 growing year-on-year, bolstered by iPhone sales of 41.3 million units.

Participating in Thursday's call were Apple Chief Executive Tim Cook and Chief Financial Officer Luca Maestri.

Highlights

• Paid subscriptions have exceeded 300 million, a 60 percent growth in the last year alone.
• Number of apps offering subs growing, almost 30K in app store today.
• $100 billion paid to developers from App Store since opening.
• AppleCare highest growth rate in 18 quarters.
• All time highs for monthly active users & FaceTime calls in Messages, with growth accelerating.
• 100 billion Siri requests this fiscal year.
• Number of articles read on Apple News doubled year-over-year.
• One billion Apple Pay transactions in fiscal year, triple year-over year.
• Apple Pay coming to CVS.
• Past quarter, more total transactions than Square, more mobile transactions than Paypal.
• Over 200 million users involved in beta testing macOS Mojave, iOS 12, tvOS 12, and watchOS 5.
• CEO Tim Cook reinforces that iOS and MacOS are different, but reminds that some frameworks have been migrated to the Mac.
• Charter offering AppleTV 4K as set top box for customers before the end of the year.
• This fall, iTunes will be the largest repository of Dolby Atmos movies anywhere.
• More than 5000 schools and colleges have adopted Everyone Can Code programs.
• More than 300 schools are adopting Everyone Can Create in the fall.
• "Limitless" ARKit apps coming, Apple working with enterprise to "change how things get done" with AR.
• Apple grew in each of its 15 major markets, with revenue up by more than 20 percent year over year in the US alone.
• iPhone channel inventory reduced by 3.5 million, company on lower end of targeted 5 weeks to 7 weeks of inventory.
• AirPods sold as fast as Apple could make them.
• 60 percent of quarterly Mac sales from new users.
• Low compare year-over-year because of fourth quarter MacBook Pro release, as opposed to third in 2017.
• More than half of iPad sales in the quarter were sold to new users.
• iPad customer satisfaction of 94 percent, 75 percent of businesses planning to buy tablets will buy iPads.
• Majority of SalesForce's 35,000 employees on Mac.
• $6 billion in debt retired, net cash $129.1 billion dollars corrected with outstanding debt.
• $20 billion in AAPL purchased on the market and retired, 112.8 million shares repurchased.
• Some new services coming to Apple in the future, says Tim Cook. No elaboration.
• DRAM prices improving, Apple may see positive financial effects in the next quarter
• iPhone X, iPhone 8, iPhone 8 Plus still "growing very nicely" according to Cook.
• Cook regarding iPhone X: "Customers want innovate products, and we already knew that."
• iPhone SE had a difficult compare to the year-ago-quarter.
• Apple picked up global marketshare worldwide in smartphone, and tablet markets.
• Fourth quarter of double-digit in mainland China, across iPhone, iPad, Services, Other categories.
• Cook: "Tariffs show up as an additional tax on the consumer."
• Cook: Tariffs are not the approach to dealing with trade imbalances on the national level.
• None of Apple's products are directly affected by the first three tariffs, fourth tariff out for public comment and is being evaluated by Apple.
• Apple will share its thoughts on the matter with the White House before the comment period ends.
• Apple not attempting to measure global economic changes and effect on the company.
• Cook: "I can't predict the future, but I am optimistic that the countries will get through this. We are hoping that calm heads prevail."
• Cook: "Cord-cutting is only going to accelerate, and will accelerate at a rate that is greater than widely thought."
• Cable cutting "periphery" grew by "very strong" double digits.
• 100 percent year-over-year growth in video streaming subscriptions through apps.
• 50 million Apple Music listeners across paid subscriptions and free trials.
• Cook on streaming music: "Extraordinary opportunity in that business to grow the market well"
• Revenues on Apple Music grew over 50 percent over the quarter
• Cook: "The smartphone market is very healthy. I think it is the best business in the world to be in."
• Some replacement cycles are lengthening, major catalyst of the change the extinction of iPhone subsidies from carriers.
• Active install base of the iPhone grew double digits since the year-ago quarter.
• Apple has never done an analysis on who is getting a battery replacement, versus who is buying a new iPhone.
• Cook: "Treat the users and customers well, and you have a great business over time."