Apple sold fewer iPhones in those three months than in the same period last year, compared to 77.3 million, compared to 78.3 million a year ago. (Of course, as it turns out, Apple completed a shorter week this year than at the end of 2016). It was below Wall Street expectations during a quarter when Apple released three new phones introduced by the iPhone X.
Despite the sale of fewer iPhones Apple could achieve more sales in the first quarter. Phone sales increased 13% year-over-year to just under $ 61.6 billion. Apple's total revenue of $ 88.3 billion was a record for the company, as was the quarterly profit.
Apple CEO Tim Cook told Wall Street analysts at a conference call today (February 1) that the iPhone was the most popular model sold by Apple in the quarter. "And that's especially notable since we did not deliver until the beginning of November and we were limited for a while," he said. "Since the launch of the iPhone X, it has been the most popular iPhone every week ... and it's true until today."
How has Apple turned fixed-line revenue into record sales? The answer lies partly in the higher price the company demands for its new phones. According to Finance Director Luca Maestri, the average selling price on the iPhone during the quarter was $ 796, compared to $ 695 last year.
Avi Greengart, director of research for consumer goods at GlobalData. Keep in mind that the new average retail price was more than Apple billed for its iPhone 7 Plus last year. "What was the culmination of the Apple product line is now the average selling price," he said.
"If we have questions as to whether Apple customers would be willing to pay more for a device, we have our answer," said Jason Snell, a longtime Apple Guard who runs the Six Colors website. , ).
Apple also benefits from the expansion of its range of iPhone devices. In addition to the three models introduced last fall, Apple continues to sell the iPhone 7 and 7 Plus, the iPhone SE and the iPhone 6s and 6s Plus at a range of different prices. "They make more money by creating new product levels for consumers looking for a differentiated premium experience," said Greengart.
Although the iPhone X is the most popular model, it is not the only one sold by Apple. Cook said that in the United States. UU As in urban China, the top five selling smartphones during the holiday quarter were all iPhones. In Japan and the UK, six of the top seven smartphones were iPhones.
"In a market as big as the smartphone market, people want a certain amount of choice and decide which to buy," said Cook. "We feel fantastic, especially when it comes to the iPhone X."
It is likely that the company is also very interested in the revenue of its services, including App Store, Apple Music, Apple Pay, and all other Apple products we pay for after purchasing our phones and tablets. Service revenue grew 18% year-on-year to nearly $ 8.5 billion.
"Now that I have spent more money on a device, I will come back and spend more on services," said Greengart, describing Apple's $ 1.3 billion active installations. of devices helps to stimulate growth.
It is possible that iPhone sales will cool off after the initial influx of early users, although Apple has offered Wall Street a bullish stance for the second quarter. Apple expects a decline in revenue of $ 60- $ 62 billion for the quarter ending in March. If it reaches this projection, it would jump from 13 to 17% of its sales in the previous year.
I suspect Apple will continue to sell new iPhones over time, "said Snells of Six Colors," Not everyone buys in the fall, and Apple has proven it over time. "The iPhone X gives Apple a starting point for variant designs which we are likely to see starting this fall, iPhone X in the first round, suggesting that there is room for updates here. down. "
But even with the increase in sales, it seems that Apple seems to manage the iPhone updates this fall a little differently than the implementation of new devices in 2017. The phrase "despite the staged release of the iPhone X" appeared several times during the analyst meeting at Apple, suggesting that Apple will not be able to launch its new phones this year.
Snell is not convinced that Apple is rethinking everything given the numbers the company has just released. "In the end, Apple seems to have worked," he said. "I guess that's going to encourage them in 2018 anyway."
However, large price jumps could be on the table. "I do not think we'll see an iPhone for $ 1,500," joked Greengart of GlobalData. Instead, see how Apple is increasing the number of phones with thin bevels and features like Face ID, an online projection with some rumors already circulating about this year's iPhone updates.
"Tim Cook said the iPhone X is Apple's platform for the next decade," said Greengart. "No doubt they will benefit."
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