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iPhone sales disappoint despite all the hype


Apple’s Q1 2018 results are out, and the numbers point to Apple’s mighty iPhone cash generating machine might be starting to run out of steam.

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Sales of 77.3 million units makes this Apple’s second best iPhone quarter to date, and represents a massive 66 percent increase compared to the last quarter. However, this is a 1 percent decline compared to the year-ago quarter.

iPhone average selling price (ASP) was however very strong at $796, compared to only $617 the previous quarter, and up dramatically compared to the $694 of the year-ago quarter.

It’s unclear why sales missed estimates. Perhaps delaying the iPhone X until November had a dampening effect, or whether buyers were put off by shortages, or perhaps it’s down to sticker shock. Or it could be down to any number of other factors. However, Apple CEO Tim Cook is bullish, saying that the “iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.”

The iPhone X, which first went on sale back in November, is priced at $999 and $1,149, depending on configuration, with is at least $150 more than any previous iPhone starting price. The iPhone 8 and iPhone 8 Plus handsets also saw a price bump of $50 each. Both of these factors contribute to the increasing ASP.

But selling fewer handsets is selling fewer handsets. It’s clear that despite all the hype and hoopla surrounding the launch of the iPhone X that Apple is finding it increasingly difficult to sell iPhones.

​iPhone sales data

iPhone sales data

Now onto the iPad.

Overall, a better than expected quarter for iPad sales, with 13.2 million units sold, representing a 28 percent unit increase compared to the previous quarter, but only a 1 percent increase compared to the year-ago quarter.

iPad ASP stands at $445, compared to $468 for the previous quarter, and $422 compared to the year-ago quarter. This suggests that the pendulum is swinging away from higher-priced iPads to cheaper models.

Putting sales into perspective, Apple sold something in the region of one iPad for every six iPhone over the holiday quarter.

iPad sales data

iPad sales data

Here is a chart pitting iPhone and iPad sales again one another.

​iPhone vs iPad

iPhone vs iPad

Things were pretty weak on the Mac front, with sales of 5.1 million equating to a 5 percent decline compared to the previous quarter and the year-ago quarter. Mac ASP is also pretty flat at $1,348, compared to $1,331 the previous quarter and $1,348 for the year-ago quarter.

Mac sales data

Mac sales data

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