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iPhone sales still underpin tech giant

Apple back in growth as Trump row lingers

AppleApple resumed growth in sales in the last quarter, driven by stronger demand for the iPhone which saw it ring up $78.4 billion in income for the three month period.

The record income came from the sale of 78.3 million iPhones for the quarter, beating its previous record from the same quarter a year earlier of 74.8m.

Sales in the run-up to Christmas are fuelled by the launch each September of the latest iPhone.

Apple’s stock jumped nearly 3% in after hours trading following the earnings release.

These latest figures represent a return to growth after annual sales fell in the last financial year for the first time since 2001 as iPhone sales, still accounting for the bulk of its business, declined in three consecutive quarters.

Analysts are concerned that the global smartphone market is saturated and that customers are taking longer to replace their phones.

There are also challenges for manufacturers to come up sufficient new applications that will persuade customers to trade up more frequently.

Apple is also likely to have benefited this time from the recall of Samsung’s Galaxy Note 7 over an exploding battery.

Apple’s services division, which includes Apple Pay, AppleCare and digital content, also performed well. The division’s sales topped $7 billion for the quarter, up 18% from the previous year.

Slower growth was reported of iPads, with revenue down 22% from a year earlier. Sales in China also fell 12%.

Apple has found itself in the heat of the immigration row with President Trump. It was among a number of big technology companies to express concerns over Mr Trump’a travel ban,

Tim Cook, Apple CEO, said: “Apple would not exist without immigration, let alone thrive and innovate the way we do.”

However, the company expects to benefit from Mr Trump’s pledge to introduce tax benefits to companies like Apple.

 



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