Apple Will Stop Disclosing How Many iPhones It Sells

Daniel Fowler
November 4, 2018

Analysts were looking for 48.4 million iPhone units in the quarter, and an average selling price of $729.

That the company can set new revenue records with iPhone sales remaining relatively flat shows exactly why Apple is charging more for its devices than ever.

Apple CEO however remains positive on India's growing smartphone market describing the company's fall as "speed bumps" in a long journey. However, on a year-to-year basis, there was a six per cent decrease in the number of iPads sold, from 10.3 million in Q4, 2017.

Apple lost its hold on the $1 trillion market cap mark after the company's latest earnings report. We told you about Apple's Services contribution, but how did its product lineup do in terms of revenue? Its services arm, for example, which includes iCloud and Apple Music subscriptions, had a turnover of close to $10bn in the period.

Apple stocks didn't react well to the lower than expected unit sales though.

Smartphone market slowed down in Q3 but Chinese makers flourished
Huawei and Xiaomi were the big winners in Q3 2018, according to smartphone shipment figures from Counterpoint Research . However, this also presents long-term growth opportunities for OEMs with many entering such markets to grow their sales.

It isn't the first time when iPhone has failed to receive the response from the market as expected by Apple and many analysts. Since Q3 2015, Apple's services sector has seen year-over-year double-digit growth. With so many users within the Apple ecosystem, the company now has the opportunity to monetize more services, improve existing services, and add new ones like Apple's Search Ad business on the App Store.

Maestri also described how the company was supporting enterprise IT through Apple Business Manager, which he said provides a new way for IT teams to deploy Apple devices at scale. Apple's fourth quarter this year included two months of sales of the new iPhone XS, which starts at $999, and the iPhone XS Max, and its $1,099 initial price. Raising prices on hardware while pushing further into all kinds of cash-generating services combined to help Apple report a healthy 20% gain in revenue to nearly $63 billion.

Both analysts and investors used it to calculate the average selling price of Apple's devices and gauge the company's financial health. Apple forecast $89 billion-$93 billion in revenue for the December quarter (its fiscal Q1 2019), which was a disappointment versus analyst consensus estimate of $92.9 billion. 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.

"The Street will find this a tough pill to swallow this morning as the transparency of the Cupertino story takes a major dent given that tracking iPhone units has become habitual to any investor that has closely followed the Apple story for the last decade+ and is critical to the thesis".

However, revenue from iPhone sales reached $37.19 billion, a 29 percent gain from last year's sales of $28.85 billion. A recent report from the consulting firm said that Apple's "relentless focus on price increases is capping its overall volume growth".

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