IPhone, iPad, Mac sales back on the rise

Posted November 03, 2017

Apple's flagship product, the iPhone X, hits stores on Friday - later than usual - and isn't reflected in Thursday's quarterly earnings report.

Analysts have been eager to see whether Apple will be able to balance supply and demand for the iPhone X during the crucial holiday quarter, with most saying it will likely take Apple until next year or early spring to do so.

Apple reported 34% increase gains in revenue for its services category, which rose to $8.5 billion for Q4. Apple shares have risen about 50 percent over the past year, with a market capitalization of over $850 billion as of Thursday afternoon.

The company hired two veterans from Sony TV to run its fledgling division, and according to the Hollywood trade publications, Apple is looking to spend $1 billion on originals, including a remake of Steven Spielberg's Amazing Stories TV anthology.

Apple's having a good run.

Apple's revenue guidance for Q4 2017 fell between $49 billion and $52 billion, with gross margin estimated to be between 37.5% and 38%.

Apple's market capitalization of about $868 billion makes it the world's most valuable publicly traded company.

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"I've got goosebumps - it's another great quarter, tremendous momentum and we've got the iPhone X to look forward to", Hank Smith, chief investment officer at Haverford Trust, which owns Apple shares, said in a Bloomberg Television interview. It competes with a range of revamped Echo speakers from Amazon.com Inc. and Google's Home devices.

The iPhone 8 and iPhone 8 Plus went on sale in October, boasting improvements to the camera and the addition of wireless charging.

It's the first time that Apple has staggered the release of new handsets that were unveiled at the same time. Global sales accounted for 62 percent of the quarter's revenue.

When contacted, a representative from iWorld from Kamla Nagar said they did not have any iPhone X stock yet.

"Price appears to be a major constraint on iPhone X demand, particularly in China", Bernstein analyst Toni Sacconaghi said in a recent report that showed three-quarters of Chinese respondents were excited by the upcoming launch, but only a quarter said they planned to buy one.

The iPad continued its return to sales growth as well, with 10.3 million units sold last quarter, beating the year-ago sales numbers by 11 percent.

Nonetheless, the just-ended quarter largely became an afterthought once Apple chose to release the iPhone X six weeks after the iPhone 8. Apple's research and development spending climbed 17% in the three months through September to $3 billion.