Apple's Phone Sales Decrease But Tim Cook Declares iPhone X a Hit

Ironically, Apple reported that it was the hefty $1,000 price tag on its iPhone X that helped the company exceed sales expectations, as Deadline reports. Therefore, any change in iPhone X production plan can heavily affect the South Korean companies.

The company also provided a forecast for next quarter that was significantly lower than Wall Street was expecting. He said the revenue for the new iPhone was the highest of any lineup in their history, driving total Apple revenue above its guidance range.

Although iPhone sales were down 1% compared with the previous year to 77.3 million and below analysts' expectations of 80 to 82 million, revenue was up 13% because of price increases and the $1,000 iPhone X, which Apple said was the top-selling model since its launch.

Apple shrugged off a slight year-over-year decline in iPhone unit sales to set all time highs in revenue and earnings in the fourth quarter of 2017.

Cook added that the iPhone X supply was "constrained for a while", but Apple and its suppliers "did a great job" reaching the supply-demand balance in December.

Trump vows again to bring down prescription drug prices
Economists believe the loss of manufacturing jobs has more to do with automation and globalization than specific trade deals. Moreover, it's an open question how much credit a president , especially in his first year, can take for the economy.

"We had an all-time record for revenue in mainland China", said Apple chief executive Tim Cook in a conference call with analysts, but did not provide that figure. That's up from $694 in the year ago quarter, and something Apple's competitors will never, ever achieve. Cook said growth for Apple actually accelerated on a week-by-week basis from past year. Perhaps the introduction of a more expensive iPhone (iPhone X starting at $999) and thus improved margins were the most important factor in hiking up the profits. However, Apple is short of its iPhone sales when compared to 78.2 million units it sold in Q1 2017.

Services and other products - which include the App Store and Apple Watch - remained strong, growing 18 per cent and 36 per cent, respectively, from a year earlier.

Analyst Carolina Milanesi, of California-based Creative Strategies, tweeted that "1.3 billion users most of whom are extremely engaged with their devices is why the services numbers will be more and more interesting going forward".

Several chipmakers, including Broadcom and Qualcomm, announced larger than expected cuts from a single customer earlier in the week, which many analysts suggested was Apple. The phone's price was apparently a significant factor for revenue in the December quarter. Apple's record-breaking profits come shortly after the release of the $999 iPhone X, although the company saw a one percent drop in sales of iPhones from past year, the increased price of the iPhone X lead to higher revenue for the company.


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