IPhone shipments drop by 1%, but Apple still posted record revenues
- Author: Arturo Norris Feb 04, 2018,
Feb 04, 2018, 10:28
Samsung Display, which has supplied display panels for the model, told its partner firms on January 19 to reduce the production of iPhone X components. But that didn't stop Apple from filing a ground-breaking sales record in the last quarter of 2017.
Apple sold 5.1 million (-5 percent) Mac units, registering 2 percent increase in average sales per week.
Even though Apple shipped fewer iPhones in the latest quarter, the iPhone X's higher price helped Apple record a 13% YoY jump in revenues.
Apple shipped 77,316 iPhones during the quarter ended December 30, a decline of about 1 percent compared with the year-ago quarter and an increase of 66 percent compared to the previous quarter.
Firstly, the company sold fewer iPhones in this quarter compared to the same quarter past year.
However, Apple is doing quite nicely as average selling prices are ahead of Wall Street's expectations, with $796 per device compared to estimates of $756.
Net profit increased to $20 billion for the quarter, up from $17.8 billion in the quarter prior. The company has started selling refurbished iPhone 7 and iPhone 7 Plus smartphones through its website, doing so alongside a 1-year warranty and the promise that all units have been tested and certified. Sales in Japan were up 26% compared with the same period a year ago, and up 88% compared with the previous quarter.
Samsung Display's partners are looking at the amount of decline in number of orders as a serious issue.
The disappointing guidance was interpreted by analysts to mean that Apple expects to sell fewer phones than expected or to sell phones that are either more expensive to make or have lower prices.
Mac sales did struggle, though, with 5.1 million sales marking a five per cent decline, but the iPad saw its third consecutive quarter of growth with 13.1 million units moved in the three months ending December.
iPhone X is the first Apple Smartphone to be applied with an OLED panel instead of a LCD panel.
Union Budget 2018 has just been announced and while there are mixed reactions from the manufacturers Apple, in particular, will likely be affected the most. The forecast raises concerns about demand for the new line of iPhones.
So, a timid quarter by Apple's unparalleled standards. If these reports are to be believed, iPhone X may not follow that trend. The Korean giant shipped 74.1 million units in 4Q17, down 4.4 percent compared to the 77.5 million units from previous year.