Apple reports drop in iPhone unit sales but record revenue

How effectively the gross sales of the iPhone X continues to be a thriller, however one factor is definite: Apple offered a gale of iPhones.

However apparently not sufficient.

The Cupertino, California-based big mentioned Thursday it offered 77.Three million iPhones, a 1 % drop from the earlier yr. Bernstein analyst Toni Sacconaghi anticipated the corporate to promote some 79 million items within the interval.

Even when Apple doesn’t break down the gross sales of particular fashions of the iPhone (which embody the iPhone X, 8, Eight Plus and older fashions), the drop in gross sales will not assist quell feedback that the iPhone X was a flop throughout year-end gross sales. The expectation was that the iPhone X can be a tough merchandise to seek out after its November launch, however shoppers had been capable of finding it simply after only a few weeks, suggesting that demand was not as sturdy as anticipated.

Then it has been mentioned that the gross sales of the iPhone X have fallen much more within the new yr and a number of other studies that Apple it is slicing your telephone’s manufacturing in half, to 20 million items. On Monday, Sacconaghi reduce his iPhone gross sales estimate for the present quarter from 66 million to 53 million.

Nevertheless, the truth that the iPhone X is costlier boosted gross sales for the corporate, which reported the very best quarterly income in its historical past. And CEO Tim Prepare dinner says the iPhone X stays his best-selling telephone.

“The iPhone X exceeded our expectations and has been the best-selling iPhone each week because it arrived in November,” the chief mentioned in a press launch.

Some tough events

Apple ended 2017 in an uncommon approach.

From the outset, it launched its iPhone on two totally different dates: the iPhone Eight and eight Plus arrived on September 22 and the iPhone X landed in the marketplace on November 3. Apple put a beginning worth of $ 999 on the iPhone X, making it probably the most costly telephones in the marketplace.

In December, the corporate acknowledged that its software program was slowing down older iPhone fashions to higher take care of deteriorating batteries and icy situations. That resulted in an enormous variety of complaints from its shoppers, to which Apple reacted by decreasing the value of the iPhone battery substitute from $ 79 to $ 29. The United States authorities is investigating how the corporate disclosed the data; Apple says it should reply all the federal government’s doubts.


The costlier iPhone did assist the corporate’s income, which noticed $ 61.58 billion phone-related inflows within the quarter, up 13 % from a yr earlier.

IPad gross sales continued to enhance, with 13.2 million items shipped (up 1 %) and a 6 % enhance in income. Its providers enterprise, which incorporates Apple Music and the App Retailer, had income of $ 8.47 billion, up 18 % year-over-year.

Apple’s internet revenue for the interval reached $ 20.7 billion, in comparison with $ 17.9 billion the earlier yr. Complete income rose to $ 88.29 billion from $ 78.35 billion.

Shares of Apple fell 1.four % to $ 165.50 in after-market buying and selling.