Apple announces best quarter with $88 billion in revenue, but iPhone sales disappoint

Analysts were becoming bearish on Apple, predicting poor sales figures for the iPhone X. They appear to be partly validated, although Apple announced its best quarter ever, with revenue of $88.3 billion, an increase of 13 percent from the same quarter last year.

Revenues and earnings per share of $3.89 (up 16 percent) both beat expectations. However, the company sold fewer iPhones than expected (80 million) and fewer than a year ago (78 million). Revenue growth was driven in part by more expensive iPhones vs. sales volume.

Here are device numbers:

• iPhones: 77 million units, $61.6 billion in revenue.
• iPad: 13.1 million units, $5.9 billion in revenue.
• Macs: 5.1 million units, $6.9 billion in revenue.
• Services (including Apple Pay, Apple Care): $8.5 billion in revenue.
• Other (including Apple TV, Apple Watch, Beats products): $5.5 billion in revenue.

International sales were roughly 65 percent of total revenue. The Americas, Europe and Greater China were the company’s top markets, in that order. Apple also reported more than $285 billion in cash on hand.

Apple provided revenue guidance for the next quarter of between $60 billion and $62 billion. Analysts had expected $65.73 billion. Shares are down on iPhone results and soft guidance.