Apple sells fewer phones but profits rise | 2018-02-02 |

Apple sells fewer phones but profits rise

Sun Online Desk     2nd February, 2018 08:59:03 printer

Apple sells fewer phones but profits rise


Apple sold slightly fewer iPhones in the final months of 2017 than it did the year before, but higher prices compensated for the dip.


The firm reported a record $20bn (£14bn) in quarterly profits, driven by strong growth in Japan and Europe.


The results, released on Thursday, were the first to provide a glimpse of sales of the firm's expensive iPhone X.


Apple boss Tim Cook said sales of the product, which starts at about $1,000, had surpassed the firm's expectations.


Apple released the 10th anniversary phone in November. It has been the top-selling phone every week since, Mr Cook said.


Investors had been worried that demand for the firm's products may be dimming, concerns that appeared to be bolstered by a weaker-than-expected sales forecast for coming months.


The number of iPhones sold in the period also slipped 1% year-on-year to 77.3 million, but Apple executives said it was important to remember that the quarter was one week shorter than in 2016.


Quarterly revenue climbed 13% year-on-year to a record $88.3bn.


"I have long believed that a 90-day clock on unit sales is a very surface way to view Apple," Mr Cook said on a call with financial analysts.


'Extremely engaged'

Mr Cook said he was watching figures such as the 1.3 billion active Apple devices around the world, which provide a strong customer base for the firm's growing services businesses, which include Apple Pay and other revenue streams.


And analyst Carolina Milanesi, of California-based Creative Strategies, tweeted that "1.3 billion users most of whom are extremely engaged with their devices is why the services numbers will be more and more interesting going forward".


Apple has been under a cloud after the firm revealed that it deliberately slowed batteries in older phones, prompting investigations in several countries.


It has since apologised, offering customers cheaper batteries and other modifications, but analysts have said that could reduce replacement purchases, potentially affecting the firm's bottom line.


After an initial fall, Apple shares climbed more than 3% in after-hours trade, reports BBC.