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Apple shares fall despite rise in revenues and profits | Apple shares fall despite rise in revenues and profits |
(35 minutes later) | |
Apple's strategy of charging more for its phones has paid off, with revenues jumping in the last three months despite relatively flat sales. | Apple's strategy of charging more for its phones has paid off, with revenues jumping in the last three months despite relatively flat sales. |
The firm sold 46.9 million iPhones in the quarter to end-September, compared with 46.7 million in the prior year. | The firm sold 46.9 million iPhones in the quarter to end-September, compared with 46.7 million in the prior year. |
But higher prices lifted revenue 20% to $62.9bn, while profits also climbed, rising 31% year-on-year to $14.1bn. | But higher prices lifted revenue 20% to $62.9bn, while profits also climbed, rising 31% year-on-year to $14.1bn. |
But a warning of possible weaker sales in coming months sparked a more than 4% fall in the share price after-hours. | |
The total number of smartphones sold by all makers globally declined for the first time in 2017. | The total number of smartphones sold by all makers globally declined for the first time in 2017. |
But Apple's strategy of charging higher prices for its phones has helped it to shrug off flagging demand. | |
The California-based company is also making more money from "services" such as the App store, Apple Music and Apple Pay. Services revenue hit a record $10bn in the quarter. | |
For the firm's full 2018 financial year, profits increased 23% to $59.5bn, as revenue rose 16% to $265.5bn. | |
'Weakness' | |
Despite the record figures, shares in the firm sunk in after-hours trading - a fall some blamed on a disappointing forecast for the important Christmas season. | Despite the record figures, shares in the firm sunk in after-hours trading - a fall some blamed on a disappointing forecast for the important Christmas season. |
The firm said it expects sales of $89bn to $93bn for the quarter that ends 31 December, against Wall Street's $93bn forecast. | The firm said it expects sales of $89bn to $93bn for the quarter that ends 31 December, against Wall Street's $93bn forecast. |
It posted sales of $88.3bn in the quarter last year. | |
Chief executive Tim Cook said that Apple is "seeing some macroeconomic weakness in some of the emerging markets" such as Turkey, India, Brazil and Russia. | |
He said some of that is due to currency fluctuation. | |
Chief financial officer Luca Maestri said Apple also faces some supply uncertainty related to the roll-out of its latest products. |