Apple announced 20 percent increase in revenue in its fourth quarter 2018 to $62.90 billion, warning that performance in the next quarter will be tough due to poor demand in emerging markets including India.
Apple said it expects between $89 billion and $93 billion in revenue for its fiscal first quarter ending in December.
IDC smartphone market report indicates that Apple has increased its smartphone share to 13.2 percent in Q3 2018 as compared with 12.4 percent share in the same quarter previous year. Apple smartphone shipments grew to 46.9 million from 46.7 million, said IDC.
Apple CEO Tim Cook told investors on a conference call that weak markets included Brazil, India, Russia and Turkey. Sales were flat in the fourth quarter in India, Cook said.
Apple’s China revenue grew 16 percent to $11.4 billion. This is the fifth quarter in a row the company has had double-digit growth in the region.
Apple said revenue from services, which includes iCloud, the App Store and Apple Music, reached $10 billion.
Apple reported revenue of $265.6 billion for its full fiscal 2018 ended in September.
Apple has sold 46.9 million iPhones in the fiscal fourth quarter. The average selling price of iPhones was $793.
Research reports from IDC, IHS Markit and Strategy Analytics point that Apple’s growth in coming quarters will not be tough.
Apple iPhone shipments increased 0.5 percent to 46.9 million units, while revenue increased 29 percent, in the third quarter, indicating that the latest iPhone models convinced customers to upgrade, even at a higher price, IHS Markit’s Jusy Hong and Zaker Li said.
Apple launched three new smartphone devices at its Fall event, as the new 6.5-inch iPhone XS Max and 5.8-inch iPhone XS were joined by the more affordable iPhone XR in the Apple line-up.
IHS Markit said Apple’s latest smartphones will assist the US-based devices major to regain the second-ranked position from China’s Huawei.
Strategy Analytics said Apple iPhone growth was flat, shipping 46.9 million units for 13 percent smartphone share.
“The new iPhone XR, XS and XS Max range is in healthy demand, but Apple’s relentless focus on price increases its capping its overall volume growth,” Woody Oh, director at Strategy Analytics, said.
IDC said Apple’s newest iPhones helped push third quarter shipments to 46.9 million units, up 0.5 percent from the 46.7 million units last year.
Apple has slashed the price of older iPhones, such as the 6S, 7, and 8 to boost sale. Apple has also removed the older SE and iPhone X from the shelves.
Baburajan K
