Published: Wed, August 01, 2018
Money | By Wilma Wheeler

Apple boosted by selling more expensive iPhones

Apple boosted by selling more expensive iPhones

The figures show that Apple sold around 41.3m iPhones during the quarter, little changed from the 41m it sold in the same period a year ago, as consumers shrugged off higher prices for Apple's flagship iPhone X model.

During a conference call with analysts, Cook said the iPhone X was the most popular iPhone in the fiscal third quarter, gaining market share around the world. "We expect the vast majority of Apple's product line-up to be refreshed during the next couple of quarters which should support near-term results".

Revenue reached $53.3 billion, an increase of 17% from a year ago and exceeding Wall Street's projections of $52.34 billion. It said fourth-quarter revenue, which will include initial sales of what should be three new iPhone models to be announced in September, will be between $60 billion and $62 billion, besting Wall Street predictions of $59.47 billion, according to StreetAccount. And look out, Spotify: Apple Music grew over 50 percent since past year, as did revenues from the company's cloud services.

The results had Apple CEO Tim Cook cheering: "We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth", he said in a press release.

The company sold 41.3 million iPhones in its third quarter, generating revenue of US$29.9 billion. It still has about $10 per share, or 2%, to go.

However, the average selling price of each handset increased significantly, suggesting the company has lured its customers into shelling out more for its devices even in a slowing smartphone market.

The biggest momentum for Apple continues to be "Services", which includes iCloud, Apple Music, and Apple Care.

Apple's best-selling products do not yet face duties stemming from the US-China trade disputes, but US President Donald Trump has threatened hundreds of billions of dollars in further tariffs on product categories not yet been enumerated.

Gross margin for the quarter was 38.3 percent compared to 38.5 percent in the year-ago quarter, with global sales accounting for 60 percent of revenue. Cook said wearables were a highlight of the quarter, with sales up 60 per cent year over year. Buffett's company Berkshire Hathaway purchased nearly 75 million shares of Apple earlier this year.

Finally, while Cook expressed opposition to new trade tariffs between the USA and China, noting how they're anti-consumer, he said that Apple is continuing to see double digit growth in China along with other major markets.

But one of the categories potentially affected by tariffs is the Apple Watch, which is one of Apple's growth drivers.

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