On Thursday, Apple reported their most profitable quarter yet. This has been after three consecutive quarters where they reported a drop in profits. The credit is largely due to the brand new flagship iPhone X which was launched in September. The quarterly report also shed light on sales figures which Apple claims that it surpassed their expectations.
To recall, the iPhone X was the first iPhone to cross the $1000 mark. This was accompanied by a good share of criticism regarding the same. According to Tim Cook, CEO of Apple, the iPhone X has been the more popular sibling among the three new phones that launched last year.
Despite the new design of the iPhone X and the improved iPhone 8 and 8 Plus, iPhone sales have plummeted by about a million iPhones short in comparison to last year. Still, the company has managed to record a hike of 13% in revenue from last year. This is likely to be because of the exorbitant price of the iPhone X.
Apple received a large chunk of their earnings from the iPhones sold this year which amounted to $61.6 billion (~Rs. 3.95 lakh crores). The other products that saw a significant rise in sales are the Apple watch and Apple TV which had a 36% hike amounting to about $5.5 billion in sales.
The Cupertino giant flaunted these figures amidst controversies surrounding the company’s approach towards transparency with its software including the throttling of its older devices. The company later rectified this and promised better control over the operating system in the upcoming update. With this, Apple has managed to retain customer loyalty and touted that active Apple devices are at an all-time high with 1.3 billion users.
That number speaks to the strength of the product; the loyalty of the customer, the strength of the ecosystem.
With Apple having increased their user base by 30%, the company has also tapped into making money from the software side of things including App Store, iTunes, Apple Music and iCloud. These services work hand-in-hand with most Apple devices. This further adds to the charm of Apple’s ecosystem wherein the hardware and software work as a whole.