Apple: iPhone sales are down (but they've never been more lucrative)

Mac also slips in Q1, but revenues don't feel a thing

By Shaun Nichols in San Francisco

Posted in Personal Tech, 2nd February 2018 02:29 GMT

Apple on Thursday touted its highest-grossing quarter ever, even as iPhone and Mac shipments were down.

CEO Tim Cook made a point of singling out strong iPhone X and iPad sales, while glossing over slowed Mac sales. For the quarter ending December 30, Apple's first of its fiscal 2018:

Cook hailed the iPhone X, which helped boost revenues despite what some analysts had considered lukewarm sales.

"We feel fantastic about the results," Cook said of his expensive new handset. "It has been the most popular iPhone every week since its launch."

While Cook shied away from telling analysts on a conference call any plans Apple has for the coming year, he did make a point of talking up augmented reality (AR), suggesting it would be a key area of focus for iOS devices going forward.

"I see AR as being profound," Cook said.

"AR has the ability to amplify human performance instead of isolating humans. We put a lot of energy in AR."

Well, while it's concentrating on AR, it won't be adding many new features to iOS 12, apparently: that next major release will be mainly stability fixes and bug squashing, and pushing back new shiny-shiny features.

Unlike many of its peers, Apple did not take a big financial hit from repatriating money kept overseas (currently around 90 per cent of Apple's cash is stored outside of the US). Execs say they will give details on their plans to bring money back to the US next quarter.

Apple shares were up 3.1 per cent to $173.04 apiece in after-hours trading. ®

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