Apple's Latest Earnings Debunks 'Disappointing' iPhone X Sales

03 May, 2018, 10:05 | Author: Cecelia Webb
  • Apple earnings jump on healthy iPhone sales

Apple CEO Tim Cook had made it clear all that money would be left overseas if the tax on foreign profits wasn't cut.

Apple's better-than-expected results stemmed in part from the sale of ancillary goodies from games to cloud storage.

Apple sold 52.2 million iPhones during the fiscal second quarter, up 2.9% from a year earlier.

An average iPhone was sold for $728 during the quarter, up from $655 a year ago, said CFO Luca Maestri during the investor call.

Of course, with the iPhone still accounting for the vast majority of Apple's revenue, analysts tend to gauge Apple's financial health by closely keeping tabs on quarterly iPhone sales.

Apple shares ended the Tuesday US trading session 2.32% higher at $169.10.

The services division continues to be one of its most lucrative, with a 31 per cent revenue growth year on year.

Apple beat its Q2, 2017 performance when it has shipped 50.7 million iPhones. Apple seems to have dodged another poorly predicted bullet.

Apple boss Tim Cook has hailed the company's "best March quarter ever" as revenues soared to more than $61bn. He said the ASP growth was "mainly driven by iPhone X", indicating the $1000 price point had worked in the company's favour.

Cook even went so far as to say that the iPhone X is outselling any of its other models on a weekly basis.

Apple revealed that services revenue crossed $9 billion for the first time. In addition, Apple's paid subscriptions across these services crossed the 270m mark in the quarter, an increase of 100m over the previous year. Apple Watch had double digits yearly growth. Cook also said Apple was narrowing its search for a new campus and expects to add some 20,000 jobs in the U.S. over the next five years.

The company plans to spend $10 billion opening and expanding data centers in the U.S. and another $20 billion on other long-term projects, but it's unclear how much of that Apple would have spent anyway. You're not our product.

Mr Cook said Apple had the three top-selling phones in China and brushed aside concerns about how a brewing tariff fight between the USA and China, where many of its phones are made, could hurt the company.

"China and the United States have this unavoidable mutuality where China only wins if the U.S. wins and the USA only wins if China wins and the world only wins if China and the United States win", Cook said in a conference call on Tuesday to discuss the Cupertino, California-based company's quarterly results.



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