Published: Mon, November 05, 2018
IT | By Lester Massey

Slipping sales bite into Apple's $1tn pricetag

Slipping sales bite into Apple's $1tn pricetag

Worldwide sales made up 61 per cent of the total number. The Cupertino-based company announced revenues of $62.9 billion, and sold 46.9 million iPhone during the fourth quarter. Both beat expectations. The company also recorded its highest ever quarterly services revenue: $10 billion, up 17 percent YoY.

In an unprecedented move, Apple has made a decision to stop revealing the sales figure of iPhone from the first quarter of fiscal 2019.

Apple shares were selling off in early trading Friday as Wall Street reacted to the tech giant's weaker-than-expected holiday sales guidance and an announcement that it would no longer report the number of iPhone it sold on its quarterly earnings reports. Apple bundles everything else into the "Other Products" category and only gives a total figure of $4.2 billion in revenue that came from AirPods, Apple Watch, Apple TV and everything else you can find in an Apple Store.

"As demonstrated by our financial performance in recent years, the number of units sold in any 90-day period is not necessarily representative of the underlying strength of our business", said Financial Chief Luca Maestri.

Apple's "privacy commitment now extends to iPhone unit disclosure", Amit Daryanani of RBC Capital Markets wrote in a note to investors.

"We set September quarter revenue records for iPhone and Wearables and all-time quarterly records for Services and Mac", Maestri added.

The company registered $62.9 billion in revenue, an increase of 20% over the same period past year, and quarterly earnings per diluted share of $2.91, up by 41%. Apple, Cook said, manufactures some of the entry iPhones in India and "that project" has gone well.

Mike Levin, co-founder of Consumer Intelligence Research Partners LLC, a market-research firm that surveys Apple customers, said the change shows Apple executives are thinking about their business in ways they haven't wanted to say aloud. The company briefly lost its $US1 trillion valuation last month as shares dipped to a low of $US206.09. Analysts, who like to be spoon-fed as much information as possible, interpreted this change to mean Apple foresees declining unit growth of iPhones.

In a reply to question from analyst Jim Suva of Citigroup Global Markets, Inc, Cook said, "We've had really great productive discussions with the Indian government, and I fully expect that at some point, they will agree to allow us to bring our stores into the country".

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