Apple's stock (AAPL) took another leg lower in after-hours trading on this shift in reporting policy. We recommend prospective investors wait for a more attractive margin of safety for this narrow-moat behemoth. The iPhone average selling price has been above $700 since the tech giant launched the iPhone X. The even pricier XS Max, the first iteration of such a device, has proven popular with Apple fans and likely helped boost its average selling price to an all-time high.
Apple's "privacy commitment now extends to iPhone unit disclosure", Amit Daryanani of RBC Capital Markets wrote in a note to investors.
Apple said it expects between $89 billion and $93 billion in revenue for its fiscal first quarter ending in December, with a midpoint of $91 billion coming in below Wall Street expectations of $93 billion, according to IBES data from Refinitiv. Maestri cited $2 billion in foreign exchange headwinds hindering the firm's outlook. From 18.3% share in Q4 2016, Apple's share has declined to 13.2% in Q3 2018.
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"We were especially pleased with Mac momentum in emerging markets, with strong growth in Latin America, India, West Asia and Africa, and Central and Eastern Europe", said Apple's Chief Financial Officer Luca Maestri. In third place on the revenue chart come the Mac computers, bringing in a decent $7.41 billion from 5.3 million units sold, while 9.7 million iPads chipped in with a "mere" $4 billion. The company says it wants to simplify the reporting process, but the reality is that unit numbers are flat while revenue is increasing, so it wants people to focus only on the latter. This resulted in iPhone revenue growing 29 percent year-over-year.
The revenue was up 20 per cent from the year-ago quarter while global sales accounted for 61 per cent of the quarter's revenue, the Cupertino-based company said in a statement. Customer satisfaction for the Apple Watch, he said, was also high, adding that the wearable is among the ways the company can make breakthroughs into the health industry.
"The "jaw dropper" last night was when Apple announced it will stop providing units/ASPs for iPhones, Macs and its other product lines", Wedbush analyst Daniel Ives wrote. While typically third and fourth quarters are the best for iPhone sales, this festival season has showered its blessings on Chinese smartphone-makers instead of the iconic Apple brand.
"Time for investors to adjust to the new disclosures", analysts from the brokerage said.