Apple Reports Mixed Fourth Quarter Results
Earnings came in at $2.91 per share, beating analysts’ expectations of $2.78. Revenue for the quarter was $62.9 billion, higher than expectations of revenue of $61.4 billion.
The results were helped by customers purchasing more high-end handsets, such as the iPhone X, XS, and XS Max. The average selling price for iPhones rose 41 percent to $793, higher than analysts’ expectations of $729 on average.
The iPhone XS and XS Max went on sale in the final days of the September quarter. In 2017, the iPhone X, the priciest model, went on sale in October.
In the quarter, Apple sold 46.9 million iPhones, lower than analysts’ expectations of 48.4 million sold. Apple sold 46.8 million smartphones in the fourth quarter of last year. The company reported that iPad sales and revenue were both down year-over-year.
Executives said on the earnings call that the company will no longer be providing unit numbers for the iPhone, iPad, and Mac. Apple will continue to report revenue for these categories.
Apple’s Services segment, which includes iTunes, Apple Music, iCloud, Apple Pay and Apple Care, reached a new all-time high for the business. Services reported revenue of $9.98 billion, topping the $8.5 billion reported during the fourth quarter of 2017. Apple’s music subscription service had 50 million active users in May
The company expects sales in the holiday quarter to be between $89 billion and $93 billion, lower than analyst estimates. Apple’s holiday sales were $88.3 billion a year ago.
The company’s shares fell as much as 7 percent after the announcement. That took Apple’s market cap below the $1 trillion mark. Apple now risks losing its status as the lone trillion-dollar company.