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Apple Beats Sales Estimates Amid Reports of Poor Demand For iPhone X (bloomberg.com)
Apple today reported revenue and profit that beat analysts' estimates and projected continued sales momentum. The results come amid reports that demand for its flagship iPhone X have fallen. Bloomberg reports: Apple revenue rose 16 percent to $61.1 billion in the fiscal second quarter. That was the fastest growth in more than two years. Profit came in at $2.73 a share, the company said Tuesday in a statement. Analysts expected sales of $60.9 billion and earnings per share of $2.64, according to data compiled by Bloomberg. Fiscal third-quarter revenue will be $51.5 billion to $53.5 billion, also ahead of Wall Street forecasts.
Apple sold 52.2 million iPhones in the fiscal second quarter, up 2.9 percent from a year earlier. Analysts had projected of 52.3 million, on average, although some investors expected fewer units. The average selling price was $728, versus analysts' expectations of $740. That suggested the flagship iPhone X didn't perform as well as some anticipated when it launched last year. Earlier this year, Chief Financial Officer Luca Maestri said iPhone revenue would grow by at least 10 percent year-over-year in the fiscal second quarter. Apple easily hit that goal, with 14 percent iPhone revenue growth in the period.
Apple sold 52.2 million iPhones in the fiscal second quarter, up 2.9 percent from a year earlier. Analysts had projected of 52.3 million, on average, although some investors expected fewer units. The average selling price was $728, versus analysts' expectations of $740. That suggested the flagship iPhone X didn't perform as well as some anticipated when it launched last year. Earlier this year, Chief Financial Officer Luca Maestri said iPhone revenue would grow by at least 10 percent year-over-year in the fiscal second quarter. Apple easily hit that goal, with 14 percent iPhone revenue growth in the period.
They sell the same number of units as last year at a higher price and post a profit? So, how exactly is demand down?
What is says is that people still like their products. The price point was a bit high for many, but it still sold. Go figure.
If they lower their price point on a feature similar model later this year, they will outsell the competitors yet again.
> the flagship iPhone X didn't perform as well as some anticipated
iPhone X failure - with it's price tag and ridiculous notch is probably what Apple is going to tweak next. Their expected "new" line of *cheaper* phones, support contracts and accessories (like the Airpod) will help Apple continue to fleece their customers. Battery issues will also help drive up sales...
1. Samsung's flagship phone is priced within $50 of the iPhone X.
2. Apple's notch is not "Ridiculous"; because it is there for a purpose. what is TRULY "Ridiculous", however, is all the Android phones that slavishly COPIED Apple (yet again!) and their "Ridiculous" Notch, even though they don't actually NEED it!
3. Say what you will about Apple's battery performance; but at least they never got their battery-operated products banned from airplanes...