Record iPhone sales help Apple beat expectations

The 10th anniversary edition of the game-changing smartphone arrives later this year...

Record iPhone sales help Apple beat expectations

Picture by Richard Vogel AP/Press Association Images

Apple enjoyed record quarterly revenues of $78.4 billion (€72.68bn) in the last three months of 2016, helped by big sales of the iPhone 7 Plus.

The Cupertino company sold over 78 million iPhones across the quarter – more than ever before – generating just over €91m ($98.16m). The average revenues per phone set a new record price of $695 (€644).

It meant that earnings were up 3% on the same period last year, with earnings of $3.36 per share recorded.

International sales accounted for 64% of the quarter’s revenue.

Despite beating expectations for sales over the holiday period, it also forecast that current-quarter revenue will fall below estimates as customers hold off purchases to wait for the launch of the 10th anniversary iPhone.

Apple CEO Steve Jobs holds up an iPhone at the MacWorld Conference in San Francisco, 2007 (AP Photo/Paul Sakuma, File)

 

There were also record high sales for Macs, Apple Watches and Apple Services for its crucial fiscal first quarter, though iPad sales dipped 19% year-on-year. The revenues from the category of "other" products – which includes the Apple Watch – actually slipped 8%.

Good news on the applications front, with The App Store generating $3bn (€2.78bn) in December alone – another record for the tech giant.

Apple’s share price rose 3% to $125 in after-hours trading late last night in the US on foot of the results.

 

Apple CEO Tim Cook said:
 
“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch.
 
"Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”
 
 
“Our outstanding business performance resulted in a new all-time record for earnings per share, and over $27 billion in operating cash flow,” said Luca Maestri, Apple’s CFO. “We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments through our capital return program to over $200 billion.”