Apple reports $13.8B profit, despite slow iPhone sales

Apple reports $13.8B profit, despite slow iPhone sales

Apple reports $13.8B profit, despite slow iPhone sales

In March, Apple launched refreshed its iPad lineup.

In February, Apple said it planned to draw down its excess cash, though Chief Executive Tim Cook had downplayed the possibility of a special dividend. The company has managed to beat Wall Street's expectations on the iPhone X front, according to the results.

The Apple machine appears to be chugging along just fine.

Apple this afternoon posted its earnings results for the recent March quarter and, as we've come to expect, the company remains a money-making machine. By way of comparison, Apple during the same quarter a year-ago sold 50.7 million iPhones. The 10-year anniversary iPhone edition sold more than any other iPhone for each week in Q2 FY2018, as it did in the three months prior. And revenue growth for iPhone was indeed strong, with $38 billion in iPhone revenue marking a gain of 14% year-over-year.

At 4.1 million units, sales of its Mac computers were down slightly, from 4.2 million units on a year ago, and down from 5.1 million units compared to the last quarter.

The tax bill makes it cheaper for Apple to bring back the more than $250 billion it holds overseas.

"We're thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables", said Apple boss Tim Cook. The iPhone X seems to be a victor for Apple, despite doubts about the price and performance.

Cook added some additional detail about iPhone X sales when asked about the sustainability of the iPhone X's pricey $999 starting price.

Still, Cook seemed optimistic, saying on the firm's earnings call: "HomePod is widely recognized for having the best sound quality for its size and class". The decision to release three new iPhone models at once, along with the X's steep price, raised fears that consumers might not opt for Apple's top-of-the-line iPhone.

Apple head bean-counter Luca Maestri said the company now has 270 million paid subscribers across its applications and services.

Apple does not offer sales figure from Apple Watch, AirPods and other peripherals but it did confirm revenues from other products were up 38 percent from previous year. Once cruising toward a $1 trillion market cap, Apple's stock has tumbled 15 percent so far this year because of the iPhone X. And some now believe that another company, perhaps Amazon or even Alphabet/Google, will reach a $1 trillion market cap first. "We also collect much less overall than others do.... So we look at China holistically, not only as a market".

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