Apple Earnings: iPhone Sales Up Even Before iPhone X Went On Sale

Lena Tucker
November 3, 2017

It's the smallest revenue category for Apple, so it's easier to make big percentage gains in that fashion, but it does point to strength in the company's smaller products.

Each year Apple's sales quarters generally follow a pattern - or have over the past 6 years or so.

The cheaper iPhone 8, which hit the market in September, has faced sluggish sales, but Apple has said that pre-orders for the iPhone X have been "off the charts".

"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", said Tim Cook, Apple's CEO. The Whisper number is the Street's unofficial view on earnings. All told, Apple earned $10.7 billion on revenue of $52.6 billion, compared with a $9 billion profit on revenue of $46.9 billion a year earlier.

Apple's stock, which has risen 45 percent this year, closed at $168.24.

The 10-year anniversary iPhone will help push sales to a record high of $84 billion to $87 billion in the quarter ending in late December, Apple said in a statement.

Apple opened pre-orders for the iPhone X on October 27 and has said demand has been "off the charts", although some analysts have been anxious about supply chain issues that might prevent Apple making enough phones to satisfy demand.

The X goes on sale Friday. Apple has been flirting with a trillion-dollar valuation, and had a value of $868 billion at market close.

Beyond the iPhone, Apple said it sold 10.3 million iPad tablets, up 11% from the year ago quarter, and 5.3 million Macintosh computers, up 10%. It competes with a range of revamped Echo speakers from Amazon.com Inc. and Google's Home devices.

It's the first time that Apple has staggered the release of new handsets that were unveiled at the same time.

Nonetheless, the just-ended quarter largely became an afterthought once Apple chose to release the iPhone X six weeks after the iPhone 8.

"Price appears to be a major constraint on iPhone X demand, particularly in China", Bernstein analyst Toni Sacconaghi said in a recent report that showed three-quarters of Chinese respondents were excited by the upcoming launch, but only a quarter said they planned to buy one.

One of Apple's latest customer lock-in tools is an updated mobile operating system supporting augmented reality features and apps that can super-impose images and information onto a user's view of the real world.

Other reports by AllAboutTopnews

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