Apple warns on holiday sales, sending value below $1 trillion

Apple warns on holiday sales, sending value below $1 trillion

Apple warns on holiday sales, sending value below $1 trillion

The company sold 46.9 million iPhones in the quarter, generating revenue of $37.2 billion. The iPhone still looms large over Apple's fortunes, accounting for more than 60 per cent of revenues. In comparison, past year during the same quarter Apple had managed to sell around 900,000 units.

Apple Chief Executive Officer Tim Cook said the forecast was partly driven by weakness in emerging markets, including India and Brazil, and currency volatility. The nearly $10 billion revenue is another record figure for the category and is expected to increase more as Apple pours in more efforts in offerings such as digital content and payments.

The technology giant's revenue for the last three months was 62.9 billion dollars (£48.4 billion) - up 20% on the same period a year ago - with a profit of 14.1 billion dollars (£10.8 billion).

Apple's revenue from services increased 17% YoY to US$9.98 billion.

As well as the "weak" guidance for Q1 2019, investors heard the news that Apple would no longer be reporting unit sales as above.

These higher average sales numbers were a key contributor to Apple's earnings: The company generated $62.9 billion in revenue during the quarter ending September 30, compared to $52.6 billion during the same quarter past year.




But one problem Apple investors will face is not knowing what the margin mix is within the services business. But the average selling price of iPhones was $793, well above analyst estimates of $750.78, according to FactSet.

It isn't the first time when iPhone has failed to receive the response from the market as expected by Apple and many analysts.

The average sale price for the latest iPhones was USD793, indicating that Apple was able to deliver more of its priciest handsets. The iPhone maker boasted $62.9 billion in revenue, slightly more than the $60-62 billion it previously estimated, as well as $14.1 billion in profit, up from $11.5 billion in the previous quarter. "We set September quarter revenue records for iPhone and Wearables and all-time quarterly records for Services and Mac", said Luca Maestri, Apple's CFO.

While values have staged a recovery of sorts in recent days, Apple's share price remains largely unaffected and is 31% up on the year so far.

Despite the plateau of iPhones sales over time, the move towards Apple's most expensive product line seems to be paying off, as Apple reported earnings of $2.91 per share, beating estimates of $2.78.

Apple (AAPL) also figured out its medium-term growth problem, convincing customers to buy subscription services: Apple made $1 billion more on Apple Music and Apple Care.

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