ASIA BUYERS SNAP UP NEW IPHONE

Apple predicts bumper sales even as it reports surge in Q4 profits to US$10.7b

HONG KONG

APPLE’S flagship iPhone X hit stores in Asia yesterday, as the world’s most valuable company predicted bumper sales despite the handset’s eye-watering price tag and celebrated a surge in profits.

The device features facial recognition, cordless charging and an edge-to-edge screen made of organic light-emitting diodes used in high-end televisions. It marks the 10th anniversary of the first iPhone release and was released in about 50 markets around the world yesterday.

The launch came as Apple announced its net profit rose 19 per cent from a year ago to US$10.7 billion (RM45.32 billion) in the fiscal fourth quarter to September 30. Revenues were up 12 per cent to US$52.6 billion.

Buyers here who had pre-ordered the phone online queued to pick up their new purchases, saying they were willing to pay for what they saw as a landmark model.

“It’s the 10th anniversary phone — anyway, other phones like the Samsung are not much less,” said banker Tony Yeung, 35, as he queued outside the Apple store in Festival Walk mall.

“It’s convenient. You can unlock the phone just by holding it up to your face in bed after you wake up,” Yeung added.

He said he had bought two of the 64-gigabyte (GB) version, costing HK$8,588 (RM4,661) each, one for him and one for his wife. The 256GB model costs HK$9,888.

Around 300 customers waited overnight outside Singapore’s Apple store, the first shop in Southeast Asia to sell the new model.

Supakorn Rieksiri and Kittiwat Wang, both 22, said they had flown in from Bangkok on Thursday to pick up pre-orders of two phones each.

“With all the different features like facial recognition and the bigger screen, it’s all quite worth it,” said Rieksiri.

Apple is setting an ambitious goal for itself to reinvent the smartphone as it strives to fend off fierce competition from rivals, especially in China.

The iPhone is its main profit driver, accounting for more than half its revenues.

At one of Shanghai’s largest Apple outlets, buyers said the facial recognition and screen design were reasons they were happy to pay a hefty price.

“I get a new phone every year when it launches new products. This time, there are many changes but I feel like the price is acceptable,” said a buyer.

Apple closed out its fiscal year posting a full-year profit of US$48.35 billion, up 5.8 per cent, on revenues of US$229 billion, a rise of 6.3 per cent from the previous year.

Meanwhile, it’s only Day One, but the grey market trade in Apple Inc’s new iPhone is already in full swing, here.

About a dozen card tables and Styrofoam boxes had been set up along Argyle Street in Mong Kok, one of the city’s busiest shopping areas, from yesterday morning.

Manned by touts surrounded by piles of Apple’s 10th anniversary smartphone, they were mobbed by shoppers — many of them reselling iPhone Xs bought earlier at one of Apple’s six official stores in Hong Kong.

The touts were paying around HK$10,300 to HK$10,500 to buy the 256GB iPhone X, while the 64GB edition netted HK$8,800 to HK$8,900. AFP