On the eve of Apple’s launch in stores of its deluxe iPhone X, the Cupertino technology powerhouse said signs point to a strong holiday season ahead. It also posted quarterly results that ble…
CUPERTINO — Apple expects a Christmas feast this holiday-shopping season, thanks to in-store sales kicking off Friday for its deluxe iPhone X.
The Cupertino-based iPhone maker on Thursday forecast between $84 billion and 87 billion in revenue for the October-through-December quarter, showing bullish confidence in the iPhone X’s popularity.
“With fantastic new products including iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K joining our product lineup, we’re looking forward to a great holiday season,” Apple CEO Tim Cook said in a statement. “And with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device.”
Following the earnings results, Apple shares jumped 3 percent higher in after-hours trading.
Its fiscal fourth-quarter results for July through September were no joke, either.
Apple revealed it sold 46.7 million iPhone units in the fourth quarter, up 3 percent from the same period a year earlier. That beat expectations for the sale of 46.1 million units.
Apple said iPhone sales rose to $28.85 billion, a 2 percent rise from a year earlier.
It is unclear how many of those sales were for the iPhone 8, which was announced on the same day as the iPhone X, but released in September.
As its fans’ anticipation for the new iPhone grew, Apple’s quarterly results blew past expectations set by Wall Street analysts. Apple’s revenue was $52.6 billion this quarter, beating analyst estimates of $50.7 billion. Compared to a year earlier, Apple saw its revenue rise 12 percent.
The company posted quarterly earnings per share of $2.07, which were 20 cents above the average Wall Street estimate of $1.87, and 24 percent higher than a year earlier.
“The overall numbers are very solid,” said Creative Strategies President Tim Bajarin. “iPhone sales are a bit disappointing as they are up only 3 percent over same quarter last year, but I attribute much of that to many Apple buyers waiting to see the reviews of the iPhone X.”
This year’s fourth-quarter earnings will be unconventional for Apple. In past years, the newest iPhone models generally dropped on September or October, and the fourth-quarter earnings allowed analysts to deduce possible holiday sales.
But there are encouraging hints. Last Friday, iPhone X pre-orders sold out in 15 minutes and backlogged demand pushed out shipping dates as far as six weeks. Despite reports of supply-chain problems, which left Apple with a limited iPhone X supply for the rest of 2017, the high demand buoyed Apple shares to an all-time high earlier this week of $169.04 and allowed analysts to muse about Apple’s presumed future as a trillion-dollar company.
For Apple to reach the trillion-dollar mark, its service segment — which includes Apple Pay, Music, App Store and iCloud, among others — will be critical. This quarter was no exception in the services segment’s ever-rising growth: Apple reported $8.5 billion this quarter in revenue from services, a 34 percent boost from a year ago.
“Revenue from services continues to grow and is a good sign longer term,” said Creative Strategies analyst Carolina Milanesi. “This should be playing a bigger role in overall revenue.”
The fastest-growing segment in revenue for the quarter went to the “Other Products” category at 36 percent, propelled by a new Apple Watch, which has cellular connection and a new Apple TV with 4K resolution compatibility.
Both iPad and Mac sales also showed double-digit growth in revenue from last year, with the former growing 14 percent and the latter growing 25 percent.
Apple’s growth in terms of geographic regions also showed promise. China, which has recently been Apple’s focus after it saw its iPhones slide in the past few quarters, saw 12 percent growth from a year earlier in its revenue. However, Apple also noted an 11 percent decline in revenue from Japan.
