iPhone Demand Charges Apple's Results
November 02 2017 - 5:02PM
Dow Jones News
By Tripp Mickle
Apple Inc. extended its year-long rebound in the latest quarter
thanks to rising iPhone demand, and the tech giant projected record
revenue in the current quarter driven by sales of its
highest-priced iPhone model ever.
Shipments of the company's flagship product rose 2.6% from a
year earlier to 46.7 million units. Demand for the iPhone, which
accounts for about two-thirds of total sales, along with an upturn
in sales of Mac computers and iPad tablets helped Apple deliver its
fourth consecutive quarterly increase in revenue and third
quarterly increase in profit. Sales in China, a critical market for
Apple, rose for the first time since early 2016.
Consistent revenue gains, combined with anticipation for a jump
in iPhone sales in 2018, have helped send Apple's stock up about
50% over the past year and pushed its market value to more than
$860 billion, following a steep decline in 2016 because of weak
China revenue and iPhone 6s sales.
Still, questions remain about Apple's future. The iPhone 8 and 8
Plus, which started shipping to customers Sept. 22, helped boost
revenue in the September quarter but had the weakest initial sales
of any new iPhone in years, according to estimates by market
research firms. The iPhone X, which ships Friday, has been dogged
by production challenges that delayed manufacturing at least one
month and hounded by questions its $999 price tag.
Apple Chief Executive Tim Cook said the iPhone 8 and 8 Plus have
outsold other models since shipping in September but added that he
has never expected sales to exceed initial sales of last year's
iPhone 7 and 7 Plus because it is releasing three phones this year.
He said that Apple had earlier planned to release the iPhone X even
later than Nov. 2, but decided to "be very bold and do it sooner."
He declined to offer specifics.
"The ramp, especially considering how advanced the product is,
is going well," Mr. Cook said in an interview. "Obviously, if it
wasn't, we wouldn't be able to guide" for record revenue for the
current quarter.
Apple expects revenue of $84 billion to $87 billion in the
current quarter, far above the company's previous record of $78.35
billion in the final three months of 2016.
For its fiscal fourth quarter ending Sept. 30, Apple's revenue
rose 12% to $52.58 billion and profit jumped 19% to $10.71 billion,
or $2.07 a share, from $9.01 billion, or $1.67 a share, in the same
period a year earlier. Analysts polled by Thomson Reuters had
expected earnings of $1.87 a share.
Write to Tripp Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
November 02, 2017 16:47 ET (20:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Sep 2023 to Sep 2024