Apple market value slips below $1 trillion amid selloff

Apple sold 46.9 million iPhones in the fiscal fourth quarter, missing analyst expectations of 47.5 million iPhones, according to FactSet.

Apple CEO Tim Cook voiced optimism that the Indian government will at some point agree to allow the technology giant to bring in its stores as he lauded the country's bold reforms, saying he was a "big believer" and "very bullish" on India. That's on the high-end of investor's expectations but flat compared to the 46 million Apple sold in the same quarter past year.

Mike Levin, co-founder of Consumer Intelligence Research Partners LLC, a market-research firm that surveys Apple customers, said the change shows Apple executives are thinking about their business in ways they haven't wanted to say aloud.

Revenue for the period climbed 20 percent from past year to $62.9 billion. Revenue from the iPhone accounted for nearly 60% ($37bn) of the company's overall revenue. As per Counterpoint data, Apple is believed to be on course to sell around 2 million iPhones in India in 2018.

Analyst Walter Piecyk from BTIG said that the strength in average selling price in the quarter just ended suggested that Apple was targeting unit sales behind Wall Street estimates.

The iPhone XR is one of the few outliers from the trend of more costly Apple gadgets.

The average selling price for iPhones beat expectations, rising 41% to $793.

"The Street will find this a tough pill to swallow this morning. given that tracking iPhone units have become habitual to any investor that has closely followed the Apple story for the last decade-plus and is critical to the thesis", Ives wrote in a note on Friday.

Services revenue hit a record $10bn in the quarter.

"As we have stated many times, our objective is to make great products and services that enrich people's lives, and to provide an unparalleled customer experience, so that our users are highly satisfied, loyal, and engaged", Luca Maestri, Chief Financial Officer, Apple said on Thursday's earnings call. Apple's disclosure that it will stop reporting unit sales of iPhones, iPads and Macs extended the decline to as much as 7.7 percent.

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 past year, with revenue down 15%. As far as its other devices are concerned, which includes AirPods, Apple TV, Apple Watch, HomePod, iPad Touch and Beats products, while the company did not report on the number of units its sold, its revenue grew by 13 per cent from $3,231 million in Q4 of 2017 to $4,234 million in the final quarter of 2018. The total revenue amounted to $62.9bn with earnings per share of $2.94.

Apple benefits from the shift because it's able to generate more revenue on its products by raising its prices.

Instead, Apple continues to try to focus investors on the strong sales growth for supplementary services, including Apple Music, Apple Pay and iCloud.


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