Apple breaks record for biggest ever company profit despite iPhone sales fall

by James Titcomb
Apple has posted the biggest quarterly profit of all time despite a fall in iPhone sales.

The world's biggest company posted profits of $20.1bn (£14bn) in the crucial final three months of the year, breaking its own record set two years ago.

It came after the release of the £999 iPhone X in November, the biggest update of the handset to date, as well as the release of the iPhone 8 in September.

Although Apple sold 77m iPhones in the three month period, a 1pc fall from last year, the higher price of the new handsets meant revenues from selling iPhones increased.

“iPhone X surpassed our expectations and has been our top selling iPhone every week since it shipped in November,” Cook said.

The company’s revenues grew 13pc to $88.3bn, also a record. The $20.1bn profits were up 12pc, from $17.9bn a year earlier.

Sales of the iPad increased marginally, while those of Apple's Mac computers fell. Sales of "other products" - a group that includes the Apple Watch and Apple TV - were up 36pc.

 

Shares initially fell in after-hours trading as Apple disappointed investors with its guidance for the next quarter, but rebounded soon after. The company said it expected revenues of between $60bn and $62bn, below expectations.

"We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup," Mr Cook said. He added that 1.3bn Apple devices are now in use, up from 1bn two years ago.

Cook said there had been a record year for the App Store, with augmented reality apps a particular area of growth. Sales of the new Apple Watch Series 3 were double those of the Series 2 last year.

Apple is the world's biggest company and is often tipped to be the first to break the one-trillion-dollar value mark, but shares have wavered in recent weeks amid fears that it may be cutting back iPhone X production.

The new handset, which boasts a bigger screen, no home button, and facial recognition technology, was well received by reviewers but costs up to £1,249 for its most expensive version. Apple said the decline in iPhone sales was largely due to the quarter being a week shorter than last year.