iPhone Sales Beat Predictions in Holiday Quarter

Apple reported a bigger-than-expected rise in iPhone sales for the holiday quarter but forecast current-quarter revenue below estimates as customers hold back on phone upgrades in anticipation of the launch of the 10th-anniversary iPhone.

Apple sold 78.29 million iPhones in the first quarter ended Dec. 31, up from 74.78 million last year, marking the first quarterly growth in iPhone sales in a year.

Analysts on average had estimated iPhone sales of 77.42 million, according to research firm FactSet StreetAccount.

The results, which reflected the first full quarter of iPhone 7 sales, come at a time when global demand for smartphones is slowing and cheaper Android alternatives are flooding the market.

Apple’s services business, which includes the App Store, Apple Pay and iCloud, recorded an 18.4 percent growth in revenue, helped by the popularity of games such as Pokemon Go and Super Mario Run and higher revenue from subscriptions.

The company forecast total revenue of between $51.5 billion and $53.5 billion for the current quarter. Analysts, on average, had expected revenue of $53.79 billion, according to Thomson Reuters I/B/E/S.

The company’s net income fell to $17.89 billion, or $3.36 per share, in the quarter from $18.36 billion, or $3.28 per share a year earlier. Analysts on average had expected $3.21 per share, according to Thomson Reuters.

Revenue rose 3.3 percent to $78.35 billion in the quarter, compared with the average estimate of $77.25 billion.

(Reporting by Narottam Medhora in Bengaluru; Editing by Saumyadeb Chakrabarty)


  1. Mackay Bell1 February, 2017

    So the “peak iPhone” meme was wrong. The really tragic thing about this is that tech writers might have to wait a full week or so before coming up with at new prediction about why Apple is doomed.

    1. Nate Hoffelder1 February, 2017

      LOL, this is true.

      But some of those writers have been saying it for so long that they don’t have to come up with something new; they can just recycle an old editorial by changing a few details.

      1. Mackay Bell1 February, 2017

        I suppose they can just polish up the “Apple is so successful it has no where to go but down” meme. Strangely, I never heard that argument about Microsoft back in the day when it was on top.

  2. Fahirsch1 February, 2017

    While visiting the USA in September I bought 7 and a 7 plus. I had to buy a golden 7+ as black was unavailable. My previous iPhone was a 5S. Since then I have practically **not** used at all my iPad mini.


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