share in premium segment smartphones plunged significantly in the first quarter of 2018 by a massive 55 percent. But there were some disconcerting facts which they chose to ignore.
Apple's Services and "Other Products" businesses saw the most impressive growth during Q2, with sales of $9.1bn (up 31 per cent) and $3.95bn (up 38 per cent). Profit came in at $2.73 a share. Analysts are saying that the focus on buybacks might further increase the cost of shares, but some investors would love to see Apple use its cash differently.
Apple sold 52.2 million iPhones in the second quarter of 2018, which was down 32 per cent from the first quarter of this year when it had sold 77.3 million iPhones but up only three per cent from the second quarter of 2017 when it had sold 50.7 million units. Its phone business brought in $38 billion in revenue, which was up 14% from the year before. That suggested the flagship iPhone X didn't perform as well as some anticipated when it launched a year ago.
Average selling prices for iPhones rose to $728 from $655 a year ago - apparently helped by demand for the iPhone X - though this missed expectations of $742.
Apple does not break down sales by iPhone model but chief executive, Tim Cook, was delighted by the overall figures and forecast a mid-point revenue range of $52.5bn for the third quarter - above estimates.
"We're thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables", Tim Cook said in a press release.
The earnings announced after the closing bell also put to rest questions surrounding the demand for Apple products, primarily the iPhone, in China. This is the same arogance which we think will eventually sink the company.
Despite all of this, the biggest question still appears to be if Apple is diversifying enough. When it showed up it was missing most of the inovations expected and was prohitatively expense.
Call off the funeral arrangements: Turns out Apple is in fine health after all.
Incidentally, with Apple now having more cash at its disposal thanks to the Republican tax plan, Apple announced a 16% increase to its quarterly dividend.
Just how well the new iPhone model has been selling has been of intense concern to investors and analysts. Analysts had expected Apple to sell 53 million iPhones.
Apple shares surged in after-hours trading in NY despite the world's most valuable listed company missing iPhone sales expectations in its latest results.