Apple up on iPhone X demand, cash pledge

For the final quarter of 2017, Apple sold 77.3 million iPhones, pushing shares up 3% in trading Thursday

Apple Inc quelled investor concern with results showing solid demand for its flagship iPhone X and a pledge to put its cash hoard to work in buy-backs, dividends and acquisitions. The shares rose about 3 per cent in extended trading Thursday.

The average selling price for the iPhone, Apple’s most important gadget, was $796 (Dh2,924) in the crucial holiday quarter. That was up from less than $700 a year earlier and it suggests that people are gravitating toward the iPhone X, which starts at a lofty $999. The metric reassured investors who were initially spooked when Apple forecast lowerthan-expected revenue in the current quarter and missed analysts’ estimates for the number of iPhones sold during the holidays.

“iPhone units were below expectations, though much higher ASP helped offset the unit softness,” Amit Daryanani, an analyst at RBC Capital Markets, wrote in a note to investors.

For the final quarter of 2017, Apple sold 77.3 million iPhones, down 1 per cent from a year earlier and below analysts’ projections of 80.2 million units. Apple said revenue in the three months ending in March will be $60 billion to $62 billion, also missing expectations.

Apple Chief Financial Officer Luca Maestri gave rare additional guidance, telling analysts on a conference call that iPhone sales would grow by at least 10 per cent year-overyear in the current quarter. Average selling prices will fall, but services and wearable device revenue growth will be strong in the period, he added.

“iPhone X was the most popular phone and since we launched it in early November, for every week it’s been the top selling iPhone,” Apple Chief Executive Officer Tim Cook said in an interview. “Couldn’t be prouder of it.”

Apple’s cash jumped to $285 billion, adding to the pile of offshore money that will be taxed under new US legislation. analysts’ The results capped a stressful few weeks for investors who have been reading reports saying Apple was cutting orders to suppliers and consumers were holding off buying iPhones. The company needs as many handsets in use as possible because that helps sell related services, accessories and other devices. Apple noted it has 1.3 billion devices in use now, up 30 per cent in two years.

Strong sales of the iPhone X help even more because those handsets are capable of running Apple’s latest features.