Home
Mobiles
Mobiles Features
iPhone X Is No Longer Critical to Apple's Holiday Shopping Quarter Results

iPhone X Is No Longer Critical to Apple's Holiday Shopping Quarter Results 5q4t1m

By Reuters | Updated: 29 December 2017 12:06 IST

Highlights

It's a result of Apple's widening lineup of devices and services
Apple released two new models, kept older ones
iPhone X sales still matter as it generates twice the iPhone 7 revenue

ment

In years past, demand for Apple's latest flagship phone was critical to the company's results over the holiday shopping quarter. 1c2u1

That dynamic might be changing, however, as Apple's widening lineup of devices and services more than makes up for any tepidness in demand this quarter for its lead product, the $999 (roughly Rs. 64,000) iPhone X.

On Tuesday, Apple's stock fell 2.5 percent to $170.57 (roughly Rs. 10,900) after Taiwan's Economic Daily and several analysts suggested iPhone X sales in the fiscal first quarter would be 30 million units, 20 million fewer than initially planned by the company.

The cut in the forecast was not confirmed, and the stock regained ground on Thursday, hitting $171.82 (roughly Rs. 11,000) by midday. The mean revenue estimate for the holiday quarter among 30 analysts remains at $86.2 billion (roughly Rs. 5,51,000 crores), near the high end of Apple's forecast of $84 billion (roughly Rs. 5,37,000 crores) to $87 billion (roughly Rs. 5,56,000 crores).

Apple declined to comment.

Part of the for Apple may reflect a change in its business strategy.

Releasing two new models and keeping older ones have made Apple less dependent on its flagship product. Apple shareholder Ross Gerber, chief executive of Gerber Kawasaki Wealth and Investment Management in Santa Monica, California, said the higher price and better margins on the iPhone X will reduce fears of a sales decline.

"We know that Apple's strategy was different this quarter by releasing two phones, the iPhone 8 and the iPhone X, and I think combined sales will be in line with what people expect," Gerber said.

Apple also has fattened its portfolio of accessories and other devices, from its Apple Watch with cellular data features.

While none is a runaway hit, collectively they are an important contributor, with Apple's "other products" segment growing 16 percent to $12.8 billion (roughly Rs. 81,850 crores) last year. Customers who buy those add-ons are also likely to buy services from the Apple Music, part of Apple's services segment, which grew 23 percent to $29.9 billion (roughly Rs. 1,92,000 crores) last year.

"Ultimately, it will be this multi-device ownership" that will generate further revenue, said Carolina Milanesi, an analyst with Creative Strategies.

iPhone X sales still matter. Each unit generates nearly twice the revenue of an facial recognition that burnish Apple's brand.

Bob O'Donnell of TECHnalysis Research, said "hit products" still represent "an enormous amount of the company's overall value."

"Will it take hold in the mainstream? That's the question that still remains," he said.

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.