Apple posts monster earnings report ahead of iPhone X launch

Delia Watkins
November 3, 2017

"The ramp for iPhone X is going well", said Cook.

"Apple is taking the iPhone franchise to a whole new level with the iPhone X, pushing the company deep into the ultra-luxury smartphone market", Drexel Hamilton analyst Brian White wrote in a note to clients ahead of Apple's quarterly report on Thursday after the bell.

"We couldn't be more excited as we begin to deliver our vision for the future with this stunning device", said Apple CEO Tim Cook about the iPhone X.

Revenue in that division surged 34 percent to $8.5 billion during the July-September period. In after-hours trading, shares of Apple are up a tad more than 3%. "The initial demand for iPhone X has been very, very strong".

"I saw many friends were posting pictures of themselves successfully ordering the iPhone X, so I cancelled mine", said Tony Tong, 29, a product manager at a tech firm in Beijing, who said he had ordered four phones in the hope of re-selling them for a profit.

But it also brings a potential stumbling block. Strong pre-order activity and long backorder times suggests that it could be in short supply this next quarter.

The smartphone is the most expensive on the market, with a top price of $1829, and features a 3D face scanner, 5.8-inch screen, glass body, and improved cameras.

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This sentiment was shared by players across the league, a number of whom took to Twitter to wish Watson well after he went down . The Houston Texans will be without rookie quarterback Deshaun Watson for the rest of the 2017 National Football League season.

Finally, the grab-bag Other Products category tallied $3.2 billion in revenue last quarter, a 36 percent increase from last year's take.

On Thursday, Apple predicted revenue for this quarter from $84 billion to $87 billion. That's higher than it expected during the same period previous year, $76 billion and $78 billion, and slightly above analyst expectations. During that quarter Apple sold 45.5 million iPhones, 9.27 million iPads, and 4.89 million Macs. On the plus side, you're unlikely to run out of storage any time soon and your odds of getting hold of a handset will be better: most customers avoid the highest capacity model to save a few bucks.

Apple is counting on the iPhone X to drive even higher-than-usual sales during the first nine months of next year - a scenario that might not play out if production problems persist and impatient consumers turn instead to phones from Google or Samsung.

Analysts believe Apple can pull off the juggling act. The company sold 74.8 million iPhones in the year ago holiday quarter.

Apple has just published its financial results for Q4 2017.

This year, Apple's new iPhone sales bump had to wait a quarter.

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