Published: Wed, August 01, 2018
Markets | By Jeffery Armstrong

Apple boosted by iPhone X sales, Wall Street sees industrial rebound

Apple boosted by iPhone X sales, Wall Street sees industrial rebound

High-priced iPhones continued to sell well with the iPhone ASP hitting $724. iPad sales came in at 11.6 million units.

The firm said its £999 iPhone X - launched previous year - remained its most popular iPhone model in the quarter and had driven the higher selling prices. "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". Analysts expected revenue of US$52.4 billion and earnings of US$2.18 a share.

By the time Apple takes the wraps off its new iPhones this fall, most people in the crowd will already be able to draw the phones from memory at the rate leaked images of the devices are appearing.A day after photos of dummy iPhone units popped up online, videos of those same two models are now circulating.

The company also reported strong growth in its fastest-growing services division, which includes Apple Music, now the largest music streaming services in the US.

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. Apple Chief Financial Officer Luca Maestri told Reuters that customers were buying costlier models and the $999 iPhone X was the quarter's best seller.

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The tech company posted $53.3 billion in third-quarter revenue, up 17 percent from the same quarter a year ago.

Earnings per share was at $2.34.

Apple reported record services revenue of US$9.55 billion, up 31 per cent from a year earlier.

Analysts were eager for news from the California-based company about how the company is riding out trade turbulence between the USA and China.

That said, the average selling price of iPhones jumped in the quarter as buyers opted for top-of-the-line X and 8 models, according to Apple. Analysts forecast US$9.2 billion.

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About the only impediments holding Apple from $1 trillion are buybacks and dividends, which enhance the company's share price though doesn't necessarily enhance its overall market value.

Gross margin for the quarter was 38.3 percent compared to 38.5 percent in the year-ago quarter, with worldwide sales accounting for 60 percent of revenue.

Also drawing positive scrutiny are Apple's "other products" which includes AirPods earphones and HomePod speaker systems.

Apple is looking at whether it will be hit by tariffs on purchases the company must make, possibly "related to data centers", Cook said on a conference call with investors.

Mr Maestri said sales from Apple Care, the company's warranty offering, were up 27 per cent versus a year ago, though the company did not disclose a dollar figure for sales.

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