Apple posts record revenue but its value slips under $1tn - General Business

Nov 05, 2018, 01:47
Apple posts record revenue but its value slips under $1tn - General Business

However, this number was slightly below what Wall Street analysts were predicting. iPad sales were 9.7 million in the quarter, down 17% from previous year.

Apple has revealed record revenue and profits - but admitted it could miss its sales targets for the lucrative holiday season, causing it to briefly lose its historic $1 trillion market cap.

Cook was confident, however, that Apple will be able to get through the circumstances, as the company is armed with "our strongest line-up of products and services ever".

For the whole of 2018, Apple was set to sell about 2 million phones - a drop of about a million from past year, he said, as Indians baulk at high prices for the devices, driven by trade tariffs and a weak rupee. "The install base of android has grown vastly; the new customer base (for Apple) is not coming". This resulted in iPhone revenue growing 29 percent year-over-year.

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Apple has provided investors with this information for the past 20 years, with the upward trajectory of iPhone sales in particular over the past decade helping drive its market value up.

Interestingly, Apple sold almost the same number of iPhone units in the final quarter of the year 2018 as it did during the same time last year, yet its revenue grew from $28,846 million in Q4 2017 to $37,185 million in Q4 2018 owing to the rise in price of its smartphones, particularly iPhone XS and iPhone XS Max. Instead, Apple will only make public revenue data.

"Judging by the sales numbers that does seem likely but when your average selling price rises to $793 a unit, due to the launch of higher spec and thus higher priced products, who really cares?" The device is Apple's newest entry-level smartphone, and is pegged to do well: like the new iPad Pros, it retains some of the iPhone X's key features, with a significantly larger 6.1-inch screen and at a more reasonable price.

But Cook stressed that Apple was happy with its performance in China, where revenue grew 16 per cent to $11.4 billion, the fifth quarter in a row the company has had double-digit growth in the region.

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Chief Financial Officer Luca Maestri said the company will stop reporting unit sales for iPhones, iPads, and Macs beginning in fiscal 2019.

What spooked some investors may have been the guidance Apple gave for its holiday quarter sales.

Analysts had expected earnings per share of $2.78 on revenue of $61.5 billion. For years, it has dutifully reported sales of Macs and iOS devices, but the Apple Watch, Apple TV and HomePod have never been broken out on their own. But higher prices of newer iPhones helped.

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