Apple posts record profit, seeks to allay fears
Apple on Thursday said its earnings in the final three months of last year set new records, with sales of its flagship iPhone X topping its expectations.
The California-based technology giant reported that profit climbed to $20 billion on revenue that increased 13% to $88.3 billion during the period.
“We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup,” said Apple chief executive Tim Cook.
“iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.”
However, Apple reported that overall iPhone sales in the quarter of 77.3 million were about a million fewer than the same period a year earlier.
But iPhone revenues rose 13 percent from a year ago, suggesting its newer models were gaining traction.
The earnings—for the first quarter of Apple’s financial year -- come amid concerns over weak demand for the newest and most expensive iPhone X, the 10th anniversary edition of the iconic smartphone.
Revenue growth from iPhone sales rose in all regions, and it was the top-selling smartphone overall in mainland China, according to Cook.
“It was a stellar quarter for iPhone,” Cook said.
“iPhone X was the most popular.” Apple also forecast revenue of between $60 billion and $62 billion in the current quarter, an outlook less rosy than analysts had expected.
Despite Apple’s spectacular trajectory in the decade since the introduction of the iPhone, the California technology titan is facing challenges on whether it can continue growth.
Apple’s image has been bruised by revelations that it updated its mobile software to slow the performance of old iPhones as batteries weaken from age.
While the iPhone delivered the bulk of revenues, $61.6 billion in the quarter, the key segment of services saw revenue growth of 18 percent to $8.5 billion.
The “other product” segment which includes the Apple Watch and Apple TV, increased 36 percent to $5.5 billion.
Cook spent much of an earnings call with analysts playing up increasing revenue from Apple services, digital content, subscriptions, and products other than iPhones.
The number of Apple devices being used in the world as of January is at an all-time high of 1.3 billion, the ranks having grown 30% during the past two years, according to Apple.
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