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Apple sold only 3% more iPhones last quarter, but profit soared

The iPhone X hasn't led to a boom in the number of phones Apple is selling, but it has kept the company's money-makin...

Posted: May 2, 2018 9:19 AM
Updated: May 2, 2018 9:19 AM

The iPhone X hasn't led to a boom in the number of phones Apple is selling, but it has kept the company's money-making machine going at full tilt.

Apple said Tuesday that it sold 52.2 million iPhones during the first three months of the year, up just 3% from the same period a year earlier. Analysts had expected Apple to sell 53 million iPhones.

Despite the limited growth in the number of iPhones sold, Apple sales hit $61 billion for the quarter, an increase of 16% from the same period a year earlier, fueled by the higher price tag of the iPhone. The company's soared 25% for the quarter, hitting $13.8 billion.

On a conference call with analysts, Apple CEO Tim Cook said the iPhone X was the company's top selling model each week in the quarter.

"It's one of those things where a team wins the Super Bowl. Maybe you want them to win by a few more points, but it's a Super Bowl winner. That's how we feel about it," Cook said. "I could not be prouder of the product."

The company cushioned the news with a big giveaway to investors.

Apple plans a new $100 billion share buyback program and a 16% increase in its quarterly dividends, following on the heels of the US tax law changes signed late last year.

The tax bill makes it cheaper for Apple to bring back the more than $250 billion it holds overseas.

Apple stock rose 3% in after hours trading Tuesday following the earnings report.

Related: Apple sinks on fears of slowing iPhone sales

Apple stock fell this month after one of its key chip suppliers warned of "continued weak demand." Since then, a series of analysts have slashed their estimates for iPhone shipments.

Daniel Ives, an analyst with GBH Insights, wrote in an investor note last week that Wall Street was in "full panic mode" over iPhone sales ahead of Apple's earnings report.

Much of the concern was directed at the iPhone X. The new model, with a full bleed screen and facial recognition, was once viewed by investors as key to driving customers to upgrade their smartphones. But there have been fears that, at $999, it was priced too high.

Cook pushed against concerns that the global smartphone market is saturated, pointing out that "a half a billion" phones that don't offer smartphone features are still being sold worldwide.

"We still believe that over time, every phone sold will be a smartphone," Cook said. "So it seems to us with that many feature phones being sold, that's a pretty big opportunity."

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 604184

Reported Deaths: 7620
CountyCasesDeaths
Hennepin1248631774
Ramsey52480895
Dakota46804470
Anoka42746458
Washington27416291
Stearns22552224
St. Louis18137312
Scott17548135
Wright16370149
Olmsted13391102
Sherburne1201295
Carver1066448
Clay825892
Rice8196110
Blue Earth762543
Crow Wing681594
Kandiyohi667885
Chisago619752
Otter Tail585884
Benton582998
Goodhue483874
Douglas475381
Mower470733
Winona461251
Itasca459263
Isanti439964
McLeod430361
Morrison424662
Nobles407950
Beltrami407561
Steele397616
Polk389072
Becker386655
Lyon363853
Carlton352756
Freeborn346932
Pine335023
Nicollet331045
Mille Lacs311654
Brown307840
Le Sueur297226
Cass286032
Todd285632
Meeker263142
Waseca238023
Martin235332
Roseau211021
Wabasha20783
Hubbard196441
Dodge18783
Renville182446
Redwood176338
Houston174616
Cottonwood167124
Wadena162823
Fillmore157410
Faribault154419
Chippewa153938
Pennington153820
Kanabec146828
Sibley146810
Aitkin138837
Watonwan13579
Rock128719
Jackson122612
Pipestone116726
Yellow Medicine114920
Pope11296
Murray107010
Swift106918
Koochiching95217
Stevens92411
Clearwater89016
Marshall88817
Wilkin83213
Lake83120
Lac qui Parle75622
Big Stone6044
Grant5938
Lincoln5843
Mahnomen5669
Norman5479
Kittson49022
Unassigned48293
Red Lake4017
Traverse3775
Lake of the Woods3453
Cook1720

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 370914

Reported Deaths: 6048
CountyCasesDeaths
Polk58232640
Linn21204339
Scott20306247
Black Hawk16119312
Woodbury15238230
Johnson1461585
Dubuque13506211
Dallas1128999
Pottawattamie11223174
Story1071448
Warren583991
Clinton561493
Cerro Gordo553593
Sioux517074
Webster515494
Muscatine4880106
Marshall486676
Des Moines467271
Wapello4337122
Buena Vista426940
Jasper421172
Plymouth402981
Lee382356
Marion366076
Jones300957
Henry294637
Bremer288261
Carroll286852
Crawford268540
Boone268434
Benton259655
Washington256751
Dickinson249344
Mahaska232351
Jackson225242
Clay216627
Kossuth216166
Tama211871
Delaware210943
Winneshiek198535
Page194522
Buchanan193733
Cedar192223
Hardin187444
Fayette186543
Wright185940
Hamilton181851
Harrison179973
Clayton171057
Butler166235
Madison164619
Mills163724
Floyd163342
Cherokee159338
Lyon158841
Poweshiek157036
Allamakee152652
Hancock150234
Iowa149824
Winnebago144531
Cass139255
Calhoun138913
Grundy137333
Emmet135841
Jefferson133435
Shelby131537
Sac130920
Union129935
Louisa129749
Appanoose129049
Mitchell126643
Chickasaw124717
Franklin123323
Guthrie123232
Humboldt119626
Palo Alto113523
Howard104922
Montgomery103638
Clarke100924
Keokuk96532
Monroe96330
Unassigned9560
Ida91535
Adair87332
Pocahontas85822
Davis85225
Monona82931
Osceola78916
Greene78011
Lucas77923
Worth7598
Taylor66812
Fremont6269
Decatur6169
Van Buren56418
Ringgold56324
Wayne54423
Audubon53411
Adams3444
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