Apple Posts Record Results Even With Fewer iPhones Sold -- Update
February 01 2018 - 4:33PM
Dow Jones News
By Tripp Mickle
Apple Inc.'s move to jack up prices on its flagship iPhone
helped deliver record quarterly revenue and profit, but the company
projected weaker-than-expected sales for the current quarter that
adds to questions about the sustainability of demand for the
technology giant's most important product.
Sales of the iPhone X -- released in November at a starting
price of $1,000 -- lifted the average iPhone selling price and
helped drive smartphone revenue to a record $61.58 billion for the
three months through Dec. 30, up 13% from a year earlier, Apple
said on Thursday. However, Apple said the number of iPhones it sold
actually fell 1% to 77.3 million units.
Total revenue rose 13% to $88.29 billion in the quarter, which
was a week shorter than the same period a year earlier, while
profit rose 12% to $20.07 billion.
The revenue boost from the iPhone, which accounts for more than
two-thirds of sales, was complemented by increased revenue from
iPads and from Apple's services business, including its App Store
sales and its music and payment services. Apple also benefited from
strong sales of its smartwatch and AirPods wireless earbuds during
the Christmastime shopping season, which lifted revenue for its
"other products" unit.
Apple said it expects revenue between $60 billion and $62
billion for the current quarter. That would represent a rise from a
year earlier, but is well below analysts' recent consensus estimate
of $66.54 billion, a number that had fallen over the past several
weeks as analysts lowered estimates on concerns about demand for
the iPhone X and uncertainty around the new iPhone 8 and 8 Plus
models launched in September.
This will be updated
Write to Tripp Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
February 01, 2018 17:18 ET (22:18 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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