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Third Quarter for Apple is all About iPhone X

We’ll be looking for clues about the next iPhone when Apple will show their fiscal results for this year.

Apple gives only small tips when it comes to announcing its new phone. Tim Cook, the CEO of Apple, gives some bombastic comments, for e.g. we are expecting an “exciting fall”. For financial analysts this will help estimate how many phones they’ll be able to sell in September after the new iPhone will be released.

The third quarter for Apple in financial terms means it’s the lowest period of each year when it comes to sales. For example, iPhone 8 and iPhone 8 plus have been released last September meaning they are in sales for over 9 months.

During this second and third quarter people have no longer an interest in the old iPhone but instead, they are looking forward for the next phone that comes to market. Last fall when they release iPhone X in November later than expected people still waited for the new iPhone or expected to lower prices for the older one.

Apple’s moneymaker is still the iPhone. They had some attempts to extend beyond the iPhone but all in vain. In Q2 of 2018 iPhone brought up 52.2 million phones that equal to 62% of sales. Also, services, iPad, Air Pods and Macs added to the earnings. Apple had strong results although some people thought the demand for the iPhone X has dropped.

The most expensive phone produced by Apple, the iPhone X started at $999 and was still the best-selling device in the last quarter of 2017.

The “future” of mobile devices came with iPhone X which redesigned its phone, removed the home button, expanded touchscreen to 5.8 inches and of course adding the new Face ID technology.

Sacconaghi predicts that the company sold 41.8 million iPhones in 2018, in comparison to 41.03 million in 2017.

As reported by Yahoo Finance shares had been rising to $2.18 a share from $1.67 a share last year. Also, sales are expected to grow up to 15% this year, roughly $52.3 billion.

September comes with big news for customers, Apple plans to introduce three new models: one which is considerably larger than iPhone X and a cheaper one.

Gene Munster from Loup Ventures figures that Apple’s iPhone has become a secure business. Business won’t see a sales pitch each year, but a flat 5% growth each year, as users won’t change their phones so frequently. We’ll see a growth in Apple Music, iCloud and App store, and that’s due to the large mass of consumers. Apple’s earnings grew up to 31%, that’s up to &9.19 billion in the second quarter, whilst sales grew up only to 2.8%.

On May 1st Cook said: “we have the best pipeline of products and services we’ve ever had”.

By Henry R. Lares

Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post.  In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.

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