Apple dips below a $1 trillion valuation

Apple dips below a $1 trillion valuation

Apple dips below a $1 trillion valuation

Apple sold 46.9 million iPhones in the fiscal fourth quarter, missing analyst expectations of 47.5 million iPhones.

Apple reported another quarter of record revenue, showing resilience after major technology stocks took a beating in recent weeks, but was cautious in the upcoming critical three-month holiday period as it tries to manoeuvre through less-than-ideal economic fundamentals. Apple sold 46.8 million smartphones in the same quarter a year ago.

"Together with Apple, Salesforce is redesigning its apps to embrace a native mobile platform with exclusive new features on iOS", he said. During the September quarter of 2017, Apple posted revenue of $52.6 billion.

The technology giant's revenue for the last three months was 62.9 billion dollars (£48.4 billion) - up 20% on the same period past year - with a profit of 14.1 billion dollars (£10.8 billion).

Analyst Walter Piecyk from BTIG said that the strength in average selling price in the quarter just ended suggested that Apple was targeting unit sales behind Wall Street estimates. This might be the reason behind Apple's decision of not sharing unit sales report.

"Judging by the sales numbers that does seem likely but when your average selling price rises to $793 a unit, due to the launch of higher spec and thus higher priced products, who really cares?"

Daniel Ives, an analyst with Wedbush, called the announcement a "jaw dropper" in an investor note Friday morning, particularly because Apple is at a "critical juncture".

From next quarter onwards, Apple will only report overall total revenue and cost of sales.

"I can assure you it is our objective to grow unit sales for every product category that we have.but a unit of sale is less relevant today than it was in the past", said Apple CFO Luca Maestri on the earnings call.

Recently, the sales of iPhones, iPads and Macs have gone down. The company says it wants to simplify the reporting process, but the reality is that unit numbers are flat while revenue is increasing, so it wants people to focus only on the latter. This is because, since the iPhone 8, all devices that Apple has released have all been priced high.

The California-based company is also making more money from "services" such as the App store, Apple Music and Apple Pay. In third place on the revenue chart come the Mac computers, bringing in a decent $7.41 billion from 5.3 million units sold, while 9.7 million iPads chipped in with a "mere" $4 billion. Services revenue for the quarter surpassed $10 billion for the first time, growing 27 percent year-over-year.

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