Apple's faithful customers aren't snapping up iPhones quite as enthusiastically as anticipated heading into the crucial holiday shopping season. Its shift up in prices, with many iPhone models costing around $1,000+ seems to be paying off in some parts of the world. Also, Cook added that the company recently had a very productive discussion with government and hopes to bring single-retail Apple Store soon. Apple's resilience was all the more impressive considering the company is exposed to China at a time of escalating trade tension with the U.S.
Yet Apple's overall revenue continues to climb from one year to the next.
Global sales had a huge role to play as Apple recorded 61% of its revenue from it. iPhone sales were not as impressive as it sounds as Apple sold 46.89 million iPhones as compared to 46.7 million iPhones sold in 2017.
"Our worry is there must be a limit to Apple's pricing power", said George Salmon, an analyst at Hargreaves Lansdown.
Apple shares fell about 7 percent in extended trading on Thursday.
Sales of the company's flagship product, the iPhone, stalled at the same level as a year ago.
By 2016, Apple was essentially a smartphone company with a sideline in selling laptops and iPads, and had a simple but elegant solution to the problem of selling fewer phones: sell more expensive phones. However, the device is increasingly being seen as a vending machine for Apple services like iCloud and Apple Music.
This newly formulated section will comprise of Apple Watch, HomePod and Beats.
While Zhang and Mohan sit on the sidelines waiting for the stock to reset itself, most analysts on Wall Street anchor a bullish perspective on the tech giant, as TipRanks analytics showcase AAPL as a Buy.
Investors and analysts were not happy with the news, as they've long relied on these sales metrics to judge the company's performance.
"This is a little bit like if you go to the market and you push your cart up to the cashier and she says or he says, 'How many units do you have in there?'" Cook said. During that quarter Apple sold 46.7 million iPhones, 10.3 million iPads, and 5.4 million Macs. The iPhone maker boasted $62.9 billion in revenue, slightly more than the $60-62 billion it previously estimated, as well as $14.1 billion in profit, up from $11.5 billion in the previous quarter. Earnings came in ahead of analyst estimates at $2.91 per share.
While analysts, on average, were expecting sales of about $93 billion to round out the year, Apple said it would only meet those expectations under the best of circumstances.
The company Apple released its latest iPhones, models selling from $1,000 to $1,500, at the tail end of the quarter, and those appeared to get off to a strong start.
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%.