Apple reports Q1 mixed bag on slowing iPhone sales
It looks like the iPhone X was a success from the start -- according to Apple, at least.
It's the first time Apple is reporting its quarterly revenue since its high-end iPhone X debuted in September. Since then, there have been rumblings and rumors (yet, unsurprisingly, nothing concrete) about alleged iPhone X production cutbacks, amid reported concerns that the phone isn't selling so well.
In its earnings report for the last three months of 2017 -- Apple's busiest of the year, thanks to holiday sales -- CEO Tim Cook said the iPhone X "surpassed our expectations and has been our top-selling iPhone every week since it shipped in November."
The company has yet to break out its iPhone X sales figures, however.
Here's what you need to know from the rest of the report: The Cupertino, Calif.-based technology giant reported a fiscal first quarter earnings $3.83 cents a share on revenues of $88.3 billion (statement). Wall Street was expecting earnings of $3.86 per share on revenue of $87.28 billion, marking a blip in earnings, but a hit on higher-than-expected revenue.
Here's the company's breakdown for the quarter:
- iPhones: 77.3 million, down 1 percent on the year-ago quarter
- iPads: 13.1 million, up 0.6 percent on the year-ago quarter
- Macs: 5.1 million, down 4.8 percent in the year-ago quarter
- Services (includes iTunes and Apple Pay): $5.48 billion, down 0.3 percent on the year-ago quarter
- Other products (accessories and Apple Watch are included, but they're not broken out separately): $5.48 billion, up 69 percent on the previous quarter
Cook praised the company's efforts during the last three months of the year.
"We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup," he said in remarks.
"We've also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That's an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers," he added.
The company also declared a cash dividend of 63 cents per share, payable mid-February.
Apple said it expects revenue between $60 billion and $62 billion for its current second quarter.
Wall Street was expecting an outlook of $65.73 billion in revenue.