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Apple shows record-breaking results for Q4 of the fiscal 2018

04 November 2018
Apple shows record-breaking results for Q4 of the fiscal 2018

Apple's decision to hide the sales of iPhone, iPad and Mac in terms of unit, also hints about the rainy days Apple could be witnessing in the quarters to come - sales of iPhone going negative. The period included about a week and a half of sales of the high-end iPhone XS and iPhone XS Max models.

"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.

The iPhone growth is slowing down, but that hasn't affected Apple's revenue so far.

Investors punished Apple in after-hours trading Thursday for one or both of two reasons. In addition to this, the lower end iPhone XR which is cheaper compared to the other devices is expected to appeal more to budget-conscious buyers.

"Apple will have trouble maintaining its recent valuation bump if the market clearly sees declines in shipments", said analyst Richard Windsor on his Radio Free Mobile blog. Region-wise, all five categorised markets turned in positive revenue, with Japan's 34 per cent rise leading the pack.

The ASP (Average Selling Price) of iPhone soared to $793 from $618 a year ago. Analysts will now have to estimate how many iPhones, iPads and Macs were sold based on revenue.

For its full fiscal 2018 ended in September, Apple reported revenue of $265.6 billion and profits of $11.91 per share, beating analyst estimates of $264 billion and $11.79 per share. However, this has generally been a problem even for other smartphone companies this year.

Shares hit $209.20, down from $232 at the start of October, even after Cook reassured investors that Apple's popularity in China remained strong, in the face of a strong U.S. and China trade war. Apple stocks plunged another 6.7% after the conference call. At market close on Thursday, Apple shares were up more than 25 per cent for the year - supported by purchases by Warren Buffett and a $100 billion share buyback program - while the Nasdaq Composite Index is almost flat for the year.

At that event, the Apple boss was bullish on the future of the iPad, but the latest figures show tablet sales for the firm were down 6% on this time previous year, with revenue down 15%.

Despite facing headwinds in India, Apple CEO Tim Cook is still betting on turning around its performance in the long term.

The revenue was up 20 per cent from the year-ago quarter while worldwide sales accounted for 61 per cent of the quarter's revenue, the Cupertino-based company said in a statement.