Published: Mon, November 05, 2018
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Apple Fiscal Q4 2018 Results Lead To No More iPhone Sales Figure

Apple Fiscal Q4 2018 Results Lead To No More iPhone Sales Figure

Apple has announced that, as of next quarter, it will no longer report unit sales figures for iPhones, iPads and Macs.

Shares of the world's most valuable public company fell 7.1 percent on Friday after revealing stagnant iPhone sales and forecasting revenue for the holiday quarter that fell short of Wall Street expectations at the midpoint. Thanks to the higher average selling price of $793, 28% more than previous year, the Cupertino-based company was able to register the best September quarter revenue to date. Apple gets most of its revenue from iPhone sales and lately it's boosted its profits by selling higher-priced models. The slide continued in pre-market trading Friday, with the stock falling 5.8 percent as of 7:15 NY. The results were good, with Apple raking in record revenue - up 18 per cent quarter-on-quarter, and 20 per cent year-on-year.

Analyst Walter Piecyk from BTIG Research said that it was typical for companies whose figures are about to go tits up to stop reporting metrics.

Apple Chief Executive Officer Tim Cook said the forecast was partly driven by weakness in emerging markets, including India and Brazil, and currency volatility. Apple raised prices on most of the devices, a relatively recent strategy to offset slowing unit sales growth. The period included about a week and a half of sales of the high-end iPhone XS and iPhone XS Max models.

Shares are trading slightly above our unchanged fair value estimate of $200 per share, and we recommend a wider margin of safety before committing capital to narrow-moat Apple. Region-wise, all five categorised markets turned in positive revenue, with Japan's 34 per cent rise leading the pack.

The change is in line with how Apple already treats other hardware sales - such as those of the Apple Watch and HomePod - which it groups together rather than revealing sales in individual categories. Worldwide sales accounted for 61 percent of the total revenue, while services revenue touched an all-time high of $10 billion.

Cook is bullish on Apple's success in India in long term run, as more and more people are moving to the middle class and the Modi government is really "focused on reforms in a major way and made some very bold moves and I applaud them for doing that and can't wait for the future there". Its services arm, for example, which includes iCloud and Apple Music subscriptions, had a turnover of close to $10bn in the period.

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