Apple projects record holiday sales of iphone X
CUPERTINO, CALIF. — Apple forecast holiday sales that exceeded most analyst estimates, a sign it expects robust demand for the new iPhone X, the company’s most important product launch in years.
The 10-year anniversary iPhone will help push sales to a record high of $84 billion to $87 billion in the quarter ending in late December, Apple said in a statement. Analysts predicted revenue of $84 billion, according to data compiled by Bloomberg. The previous record was $78 billion during the holiday quarter of 2016.
The iPhone X has two headline innovations: an edge-to-edge display and a facial recognition system that uses 3-D sensors. Both components have endured production problems, and analysts had been expecting limited supply of the phone when it goes on sale Friday in stores.
Production is “going well, we’re doing more each week and I’m pleased with how things are going,” chief executive officer Tim Cook said in an interview. “The initial demand for iPhone X has been very, very strong.”
The current six-week waiting time for online iPhone X orders will be reduced in the next two days as Apple adds more production capacity, he added.
IPhones usually account for about two-thirds of Apple revenue and the devices are a hub for a growing suite of other products and services. If the iPhone X is a big hit, that could fuel growth of offerings like Apple Music and iCloud storage in coming years.
Apple shares have hit records this week, with investors predicting demand for the handset will continue in future quarters. Soon after people started pre-ordering the iPhone X on Oct. 27, shipping times lengthened to as many as six weeks. That suggested strong demand and limited supply with Apple saying demand was “off the charts.”
For the company’s fiscal fourth quarter, which ended Sept. 30, Apple reported earnings of $2.07 a share on revenue of $52.6 billion. Analysts projected $1.87 a share and sales of $50.7 billion. Sales in Greater China rose 12 per cent to $9.8 billion.