Apple has reportedly announced their biggest quarterly profit ever despite a drop in iPhone sales this year.
The Telegraph reports that tech giant Apple has posted a record-breaking quarterly profit despite a drop in iPhone sales. Apple announced a profit of $20.1 billion in the final three months of the year, shattering their own record set two years ago. 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 last year, the increased price of the iPhone X lead to higher revenue for the company.
Apple CEO Tim Cook commented the sale of the new iPhone model saying, “iPhone X surpassed our expectations and has been our top selling iPhone every week since it shipped in November.” The company’s revenues grew by 13 percent to $88.3 billion, their $20.1 billion profits were an increase of 12 percent from $17.9 billion last year. Apple’s other products saw varying degrees of success, iPad sales increased but Mac sales dropped while Apple’s other products such as the Apple Watch and Apple TV saw an increase of 36 percent.
Apple’s shares dropped in after-hours trading as the company left investors worrying about the future with their guidance for the next quarter, but share prices soon bounced back after the company stated an expected revenue of between $60 billion and $62 billion. CEO Tim Cook stated that 1.3 billion Apple products are now in use worldwide up from 1 billion two years previously, “We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup,” said Cook.
Apple’s App Store also saw a record year said Cook, he also stated that sales of the Series 3 Apple Watch had doubled over sales of the Series 2 watch. However, despite being one of the biggest companies in the world and regularly predicted to be the first company to break the trillion dollar valuation mark, share prices have wavered as rumours spread that the company may scale back production of the newly released iPhone X. Apple has blamed the drop in iPhone sales on this quarter being a week shorter than last year.