Apple reports earnings after the bell

Muriel Hammond
November 3, 2017

THOUSANDS of Australians are expected to queue around Apple Stores and phone outlets this morning after huge demand and record-breaking pre-orders delayed new iPhone X's shipments until just before Christmas. His statement is based mainly on the fact that Apple has the most advanced camera platform right now with the 6P design. Switching to a new design might improve aperture performance, and thats it.

Nonetheless, the just-ended quarter largely became an afterthought once Apple chose to release the iPhone X six weeks after the iPhone 8. If the iPhone X is a big hit, that could fuel growth of offerings like Apple Music and iCloud storage in coming years.

Telsyte managing director Foad Fadaghi said demand for Apple's premium smartphone would rise even after its launch as buyers who held out to see the handset made up their minds, and Australia's iPhone 6 and 6S users jumped on the chance to upgrade. Updated MacBook Pro models helped move 5.3 million Macs, up 10 percent from a year ago.

Apple said it sold 46.7 million iPhones in the fourth quarter ended September 30, above analysts' estimates of 46.4 million, according to financial data and analytics firm FactSet.

Of the iPhone figures cited, "we believe less than 10% of that is the 8", says Daniel Ives, an analyst with GBH Tech Research. However, they will also have the most customers. iPhone product launches have become showstopping spectacles at Apple Stores with thousands of fans eager to be part of the atmosphere and excitement. Apple said it expects revenue of $84 billion to $87 billion for the first three months of 2018, which would be a record quarterly sales and indicate healthy consumer demand for its latest iPhone lineup.

Analysts expected earnings of $1.87 per share and revenue of $50.7 billion, according to FactSet. Revenue from Apple's suite of services, meanwhile, came in at $8.5 billion, a solid 34% increase from the year-ago quarter. Surprisingly, that's not the fastest-growing category for Apple - that would be the "other products" category that includes hardware like the Apple Watch, AirPods and Apple TV. By comparison, Apple shipped almost 217 million iPhones in its just-completed fiscal 2017. Sales in China were up 12%, reversing a drop off in the company's second largest market. Maestri also told Reuters the company had doubled its revenue in India during the fiscal fourth quarter, though he did not give any details.

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