Apple reports solid iPhone revenue but stays quiet on HomePod sales
After coming off Q1 2018 touting the iPhone X as its top selling smartphone, Apple today announced that in fiscal Q2, the company brought in $61.1 billion in revenue, meeting its own projections. International sales accounted for 65 percent of the quarter’s revenue, with 20 percent of growth coming from Greater China and Japan. Apple’s fiscal quarter ended on March 31st, meaning this did not account for the new red iPhone 8 and 8 Plus that were added to the company’s Product (RED) line, which some speculated were partly to appeal to Asian markets where red is considered a prosperous color.
“Customers chose iPhone X more than any other iPhone each week in the March quarter,” CEO Tim Cook said in a statement. Though he did not comment on rumors of a cheaper iPhone X, the CEO did say diversity in product options is why iPhones sell well in a saturated industry. “We’re going to continue to provide different iPhones … for folks to meet their needs.”
Though iPhone sales are up 14 percent in revenue year over year, Mac sales have flattened with a 0 percent revenue change and unit sales declining 3 percent. Apple’s Other Products category, which includes the HomePod that went on sale in early February, fell 28 percent from last quarter. This time last year, the category fell 29 percent between quarters. “HomePod is widely recognized for having the best sound quality for its size and class,” Cook says, skirting concerns over HomePod sales. “We’re looking forward to adding new features to HomePod.”
As to be expected with most earnings reports now, Apple’s services division continues to be one of its most lucrative, with a 31 percent revenue growth year over year and is the only division that did not see sales decline since the last quarter.