Apple sells 52.2 million iPhone handsets in fiscal Q2, fails to beat estimates but stock still soars
Despite Tim Cook's claim about iPhone X sales, the company reported an Average Selling Price for the iPhone of $728 versus forecasts of $740. That would seem to indicate lower sales than expected of the premium priced anniversary model. Despite the lower ASP, revenue attributed to the iPhone rose 14% year-over-year.
Apple also sold 9.1 million iPad tablets during the three month period, basically in-line with forecasts of 9.17 million units. Products like the Apple Watch and the HomePod smart speaker were mixed into the "others" category, which had $3.9 billion in revenue for the quarter. That beat analyst's forecast of $3.7 billion. Cook noted that wearables, which include the Apple Watch, had a 50% hike in revenue.
Services, an area that Apple is said to be focusing on with the slowdown in smartphone sales, had $9.19 billion in sales during the quarter. That was sharply higher than the $8.39 billion that Wall Street was looking for, and could be a reason for the stock to continue higher in the days ahead.
Revenue for the company topped estimates at $61.1 billion, and earnings per share also came in above expectations at $2.72 a share. And to help bolst the mood of Apple investors, the company said that its fiscal Q3 revenue will be in a range between $51.5 billion to $53.5 billion. Wall Street expected Apple to forecast $51.61 billion for the next quarter. The company reported growth in all geographic segments including a pop of 20% in Greater China and Japan. Cash on hand declined to the lowest balance since June at $267.2 billion.
After hours, Apple shares soared 3.7% to $175.38. The high for the year is $183.50. And just like that, Wall Street's "full panic mode" over Apple is over.