iPhone Sales Fall But Apple Posts Record Revenue
Expensive iPhone X puts off some users but boosts Apple’s bottom line
Sales of the iPhone fell over the past three months, but revenue from the range increased by 13 percent as Apple reported record revenues of $88.3 billion.
The iPhone X is the most expensive iPhone ever and while this may have diminished its appeal to some, the margins are clearly benefiting Apple.
In total, 77 million smartphones were shipped, while Apple also shifted 13.1 million iPads – an increase of one percent – and 5.1 million Macs were sold.
iPhone X
Service revenue, which includes the App Store and Apple Music among others, rose by 18 percent to $8.5 billion, while ‘other’, which includes the Apple Watch and headphones, contributed $5.5 billion to Apple’s coffers.
“We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone line-up. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” said Tim Cook, Apple’s CEO.
“We’ve also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That’s an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers.”
Earlier this week, research from Kantar Worldpanel ComTech found that Apple’s market share had increased across Europe, with the iPhone X among the top three best-selling devices across most major markets. However its share in the UK fell by 2.4 percent to 44.2 percent.
Late last year it emerged that Apple was intentionally slowing down older devices in a bid to maximise battery life. Following consumer outrage it launched a cheaper battery replacement programme and promised to add additional battery management options in iOS.
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