Apple's finance chief Luca Maestri sought to justify the change, claiming that unit sales are "less relevant today" because the company ships a vast range of iPhone and iPad models at several different prices and often bundles them with other products, reported the Financial Times. Earnings came in ahead of analyst estimates at $2.91 per share.
" We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth", said Tim Cook, Apple's CEO. The company also said it expects sales in the all-important holiday quarter to be between $89 billion and $93 billion, skewing short of analyst estimates.
What matters now, in other words, isn't necessarily how many devices Apple sells from one quarter to the next, but how much it makes from the devices sells. And investors tend to value subscription business through a combination of their revenue growth rate and margins - information that Apple investors will now have, said Tien Tzuo, chief executive of Zuora, a company that helps subscription businesses track their finances. Apple announced that starting with its next quarterly report, it was no longer going to report how many iPhones, Macs, or iPads it sells anymore, just how much revenue it earns.
Apple shares fell about 7 percent in extended trading on Thursday.
"Last night Apple delivered FY4Q (Sept.) results which beat the Street from a headline number but slightly missed iPhone unit shipments which was the focus of investors", the Wedbush analyst Daniel Ives wrote.
The flat sales of iPhones and yet the increased revenue shows that Apple is earning by increasing the price of the devices. "The Street will find this a tough pill to swallow. given that tracking iPhone units has become habitual to any investor that has closely followed the Apple story for the last decade-plus and is critical to the thesis". A new MacBook Air and Mac mini were also launched here in NY on Tuesday. For the quarter gone by, Apple posted revenue of $62.9 billion and an EPS of $2.91, both staggering figures.
Phone sales started to slow their rise from 2013 to 2015, but in 2016 something that had never happened before occurred: Apple sold fewer phones in 2016 than it had sold in 2015. Apple is still growing revenues and remains wildly profitable.
Warren Buffett's holding company Berkshire Hathaway has been piling money in tech giant Apple as the company spends its cash on shareholder-friendly moves, which include boosting its share buybacks and dividend.
That jump following double-digit increases in the iPhone's average sales price from the previous year in each of the three previous quarters, driven by last year's release of the first iPhone to cost at least $1,000, a test of people's love affair of the device. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo.
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