Apple sold only 3% more iPhones last quarter, but profit soared

The iPhone X hasn't led to a boom in the number of phones Apple is selling, but it has kept the company's money-makin...

Posted: May 2, 2018 10:19 AM
Updated: May 2, 2018 10:19 AM

The iPhone X hasn't led to a boom in the number of phones Apple is selling, but it has kept the company's money-making machine going at full tilt.

Apple said Tuesday that it sold 52.2 million iPhones during the first three months of the year, up just 3% from the same period a year earlier. Analysts had expected Apple to sell 53 million iPhones.

Despite the limited growth in the number of iPhones sold, Apple sales hit $61 billion for the quarter, an increase of 16% from the same period a year earlier, fueled by the higher price tag of the iPhone. The company's soared 25% for the quarter, hitting $13.8 billion.

On a conference call with analysts, Apple CEO Tim Cook said the iPhone X was the company's top selling model each week in the quarter.

"It's one of those things where a team wins the Super Bowl. Maybe you want them to win by a few more points, but it's a Super Bowl winner. That's how we feel about it," Cook said. "I could not be prouder of the product."

The company cushioned the news with a big giveaway to investors.

Apple plans a new $100 billion share buyback program and a 16% increase in its quarterly dividends, following on the heels of the US tax law changes signed late last year.

The tax bill makes it cheaper for Apple to bring back the more than $250 billion it holds overseas.

Apple stock rose 3% in after hours trading Tuesday following the earnings report.

Related: Apple sinks on fears of slowing iPhone sales

Apple stock fell this month after one of its key chip suppliers warned of "continued weak demand." Since then, a series of analysts have slashed their estimates for iPhone shipments.

Daniel Ives, an analyst with GBH Insights, wrote in an investor note last week that Wall Street was in "full panic mode" over iPhone sales ahead of Apple's earnings report.

Much of the concern was directed at the iPhone X. The new model, with a full bleed screen and facial recognition, was once viewed by investors as key to driving customers to upgrade their smartphones. But there have been fears that, at $999, it was priced too high.

Cook pushed against concerns that the global smartphone market is saturated, pointing out that "a half a billion" phones that don't offer smartphone features are still being sold worldwide.

"We still believe that over time, every phone sold will be a smartphone," Cook said. "So it seems to us with that many feature phones being sold, that's a pretty big opportunity."

West Lafayette
Broken Clouds
76° wxIcon
Hi: 85° Lo: 62°
Feels Like: 76°
Kokomo
Clear
69° wxIcon
Hi: 83° Lo: 58°
Feels Like: 69°
Rensselaer
Clear
66° wxIcon
Hi: 83° Lo: 57°
Feels Like: 66°
Fowler
Clear
64° wxIcon
Hi: 81° Lo: 60°
Feels Like: 64°
Williamsport
Clear
69° wxIcon
Hi: 83° Lo: 62°
Feels Like: 69°
Crawfordsville
Scattered Clouds
67° wxIcon
Hi: 83° Lo: 63°
Feels Like: 67°
Frankfort
Clear
67° wxIcon
Hi: 81° Lo: 60°
Feels Like: 67°
Delphi
Clear
70° wxIcon
Hi: 83° Lo: 59°
Feels Like: 70°
Monticello
Clear
69° wxIcon
Hi: 85° Lo: 58°
Feels Like: 69°
Logansport
Clear
66° wxIcon
Hi: 82° Lo: 57°
Feels Like: 66°
Warm-up again with increasing humidity & risk of storms.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 75862

Reported Deaths: 3069
CountyConfirmedDeaths
Marion16088730
Lake7688278
Elkhart492685
Allen4002163
St. Joseph357883
Hamilton2829104
Vanderburgh202213
Hendricks1927108
Cass18029
Johnson1789119
Porter135539
Clark128749
Tippecanoe123811
Madison100665
LaPorte93130
Howard91365
Kosciusko86812
Bartholomew81747
Floyd80948
Marshall79323
Monroe76631
Delaware74552
Dubois70812
Vigo69911
Noble68829
Boone68746
Hancock68339
Jackson5965
Warrick58830
Shelby56527
LaGrange56310
Grant52930
Dearborn51228
Morgan49334
Clinton4444
Henry40620
Wayne38510
White37611
Montgomery35921
Lawrence35227
Harrison34823
Decatur34132
Putnam3128
Daviess27720
Miami2772
Scott27210
Jasper2552
Greene25434
Franklin24615
DeKalb2384
Gibson2314
Jennings22712
Steuben2133
Ripley2138
Carroll1962
Fayette1947
Perry18713
Posey1790
Starke1787
Wells1742
Orange17424
Fulton1722
Wabash1703
Jefferson1672
Knox1610
Whitley1556
Tipton14312
Washington1421
Sullivan1381
Spencer1373
Clay1245
Huntington1243
Randolph1244
Newton12010
Adams1092
Owen991
Jay920
Rush854
Pulaski811
Fountain742
Brown741
Blackford652
Ohio656
Benton640
Pike590
Vermillion580
Switzerland530
Parke511
Martin480
Crawford450
Union410
Warren241
Unassigned0206

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events