iPhone sales were flat but Apple's profit jumped 32%

Apple sold essentially the same number of iPhones last quarter as it did a year prior, but sales and profits soared a...

Posted: Aug 1, 2018 10:14 AM
Updated: Aug 1, 2018 10:14 AM

Apple sold essentially the same number of iPhones last quarter as it did a year prior, but sales and profits soared as it made more money from higher-priced devices.

Apple said Tuesday that it posted a $11.5 billion profit for the three months ending in June, up 32% from the same period a year ago. Apple's revenue increased 17% to $53.3 billion, a new record for its fiscal third quarter.

The jump comes despite flattening iPhone unit sales. Apple sold 41.3 million iPhones during the three months ending in June, little changed from the 41 million it sold in the same period a year ago.

The results highlight Apple's successful shift away from depending on selling more and more iPhones in order to grow its business. Instead, Apple is finding new growth from higher priced iPhone models, like the $999 iPhone X, as well as supplementary services offered for its portfolio of devices.

"Apple is no longer a 'one trick pony' with its entire future based on ever rising iPhone unit volumes," Dan Morgan, senior portfolio manager at Synovus Trust, told CNNMoney by email.

Related: Apple is within striking distance of $1,000,000,000,000

Apple's Services category, which includes the App Store, Apple Pay and AppleCare, hit $9.5 billion in sales for the quarter, up more than 30% from a year ago. Meanwhile, the average selling price of an iPhone was $724 during the quarter, up from $606 a year ago.

On a conference call with analysts after the report, Apple CEO Tim Cook said the pricey iPhone X has been the "top selling iPhone" model since it launched last year.

Apple also gave investors reasons to be optimistic about the timing and demand for the next iPhone launch expected in the fall. Apple forecast its sales for the upcoming quarter would be between $60 billion and $62 billion, above Wall Street's expectations.

Multiple analysts expect Apple to release three new iPhone models in the fall, though the precise timing of each is unclear. Typically, Apple launches new iPhones in the second half of September, just before its fiscal fourth quarter ends.

Cook also sounded a positive note when asked about the looming threat of tariffs on its business, despite the recent escalation in the trade war between the United States and China.

"Each country can only prosper if the other does. I can't predict the future, but I am optimistic that the countries will get through this," Cook said on the call. "We are hoping that calm heads prevail."

Related: Apple earnings: All eyes on the next iPhone

Apple stock rose more than 3% in after hours trading Tuesday following the earnings report. Apple is now within striking distance of becoming the first company to top a $1 trillion market value.

The report comes amid investor jitters about the tech sector. The so-called FAANG stocks -- Facebook, Amazon, Apple, Netflix and Google parent Alphabet -- started the week in the red, after two members of the much-hyped group spooked investors by growing more slowly than expected.

Terre Haute
Clear
82° wxIcon
Hi: 94° Lo: 73°
Feels Like: 86°
Robinson
Clear
81° wxIcon
Hi: 91° Lo: 71°
Feels Like: 85°
Indianapolis
Few Clouds
81° wxIcon
Hi: 93° Lo: 73°
Feels Like: 86°
Rockville
Clear
80° wxIcon
Hi: 92° Lo: 72°
Feels Like: 83°
Casey
Clear
81° wxIcon
Hi: 91° Lo: 71°
Feels Like: 86°
Brazil
Clear
82° wxIcon
Hi: 92° Lo: 72°
Feels Like: 86°
Marshall
Clear
82° wxIcon
Hi: 92° Lo: 71°
Feels Like: 86°
Hot, humid, and stormy.
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 150554

Reported Deaths: 7309
CountyConfirmedDeaths
Cook934964664
Lake10104427
DuPage9454480
Kane7949280
Will7061322
Winnebago3131101
McHenry2179100
St. Clair2089143
Kankakee133565
Unassigned1170210
Rock Island109430
Madison107770
Kendall101122
Champaign99217
Boone62321
DeKalb59520
Peoria58329
Sangamon47333
Jackson34319
McLean29214
Randolph2917
Stephenson2806
Ogle2794
Clinton24417
Macon24122
LaSalle23717
Whiteside19915
Union19519
Grundy1855
Coles18417
Iroquois1685
Tazewell1588
Knox1490
Warren1470
Monroe14113
Adams1391
Cass1367
Williamson1344
Morgan1323
Jefferson11117
Lee1042
McDonough10415
Henry1031
Vermilion822
Pulaski790
Marion730
Macoupin613
Montgomery591
Perry591
Douglas540
Livingston532
Jo Daviess491
Christian474
Jasper477
Ford411
Woodford392
Jersey371
Franklin360
Bureau312
Menard260
Mercer250
Washington250
Cumberland240
Fayette243
Mason230
Wabash230
Alexander220
Carroll212
Johnson210
Piatt200
Effingham191
Hancock191
Moultrie190
Shelby191
Clark180
Crawford180
Logan180
Bond171
De Witt160
Edgar160
Fulton160
Massac150
Wayne151
Schuyler130
Marshall120
Brown100
Saline100
White90
Greene80
Henderson80
Lawrence80
Richland70
Hamilton60
Stark60
Pike50
Gallatin40
Clay20
Edwards20
Calhoun10
Hardin10
Out of IL10
Pope10
Putnam10
Scott10

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 49063

Reported Deaths: 2732
CountyConfirmedDeaths
Marion11760689
Lake5276246
Elkhart340255
Allen2835133
St. Joseph200169
Cass16429
Hamilton1608101
Hendricks1425100
Johnson1296118
Porter76738
Tippecanoe7359
Clark66844
Madison66764
Bartholomew59145
Vanderburgh5876
LaPorte58326
Howard58058
Kosciusko5624
Marshall5016
Noble48528
LaGrange4779
Jackson4733
Boone45443
Delaware45252
Hancock45236
Shelby43125
Floyd38444
Morgan32731
Monroe30928
Montgomery29720
Grant29626
Clinton2902
Dubois2886
Henry28216
White26610
Decatur25432
Lawrence24825
Dearborn23823
Vigo2388
Warrick22729
Harrison21622
Greene19032
Miami1862
Jennings17712
Putnam1708
DeKalb1634
Scott1628
Daviess14817
Wayne1436
Orange13623
Perry1359
Steuben1302
Franklin1268
Ripley1247
Jasper1232
Wabash1142
Carroll1102
Fayette1037
Newton9910
Gibson982
Whitley975
Starke943
Randolph804
Huntington782
Jefferson762
Wells751
Fulton721
Jay680
Washington671
Pulaski661
Knox640
Clay604
Rush583
Owen501
Adams491
Benton480
Posey450
Sullivan451
Spencer441
Brown421
Blackford392
Crawford320
Fountain322
Tipton311
Switzerland280
Parke240
Martin220
Ohio180
Vermillion140
Warren141
Union130
Pike110
Unassigned0193