Apple’s iPhone sales volume in the first quarter were below market expectations of less than 3 percent. Revenue for the same period did not meet the expectations of the experts. The share price of Apple fell sharply after the performance record announcement.
Apple reported revenue of $52.9 billion and a net profit of $11 billion for the first quarter of this year. Sales increased 4.6 percent and net profit increased 4.9 percent over the same period last year. Profits were in line with market expectations, but revenues were below expectations ($53.1 billion).
iPhone sales were also lower than expected. The total number of iPhones sold last quarter was 50.76 million, falling short of the same period last year (51.19 million). The gap with market experts (52.27 million units) is close to 2 million units. Especially, the strong sales of the Chinese market were not good because of the strength of the dollar. iPhone sales in China fell 14% comparing to last year.
“The news that the iPhone 8 body was leaked has increased the number of consumers waiting for new products,” said Tim Cook, chief executive officer at Apple. The market expects the release of iPhone 8, the 10th anniversary of the iPhone, this fall.
The phone market is struggling, but the software platform and music were solid. App Store revenue increased 40% year-on-year. Sales related to music streaming service ‘Apple Music’ also increased more than 10%.
Apple shares closed at $147.15, up 0.6% from the previous day. The closing price is the highest ever. However, after the market closed, the earning report was released, the stock prices were reversed to $ 144 a share. It is an analysis that the disappointment related to the iPhone sales volume has adversely affected the share price.
Meanwhile, Apple’s cash reserves, excluding $ 100 billion in debt, totaled $ 257 billion. Of these, 93% were found not in the US but overseas.