Record Earnings But iPhone Sales Slip At Apple
Apple shares were a touch easier in after hours trading despite reporting a record holiday quarter, buoyed by strong demand for its new generation of iPhones.
The company reported net profit of $US20.1 billion, up from $US17.9 billion a year ago, but the shares were sold off a touch for a weak first quarter forecast.
Analysts though were not happy with the forecast for the current second quarter for the giant - revenue of $US60B-$US62B in the current quarter, against analysts’ forecasts for more than $US65 billion.
"iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” said Apple CEO, Tim Cook.
“We’ve also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That’s an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers.”
Apple reported revenue of $US 88.3 billion for its first quarter of its 2017-18 financial year - above analysts’ estimates of $87.28 billion and much better than the $US78.6 billion for the same quarter of 2016
iPhone unit sales were not a record, and in fact were below last year’s holiday quarter. iPhone unit sales 77.3 million (against 78.3 million a year ago) for revenue of $US61.6 billion in the quarter
China sales were $17.96 billion, which is a good sign for Apple’s China business.
iPad unit sales: 13.2 million; Mac unit sales: 5.1 million; software and services revenue: $US8.5 billion; other products revenue: $US5.5 billion.
Analysts said that was a miss on iPads and Macs, but “Other products,” sold much better than expected, suggesting that Apple Watch and Beats headphones sold well in holiday shopping
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.