Tim Cook debunks rumors of slow iPhone X sales

Posted:
in iPhone edited May 1
After weeks of handwringing over what Apple would announce in relation to iPhone X demand, CEO Tim Cook put the rumors of a "dead" release to rest in one fell swoop.

iPhone X


"Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter," Tim Cook said as Apple announced earnings on Tuesday. "We also grew revenue in all of our geographic segments, with over 20 percent growth in Greater China and Japan."

For weeks, there has been a theme in a lot of coverage of what's going on with Apple, much of it related to the iPhone X, and the supposed "failure" of the model.

One bogus report claimed the product was "dead," while various others pointed out that there was little demand or interest in the flagship device.

"This is the first cycle in which the top of the line iPhone model has also been the most popular," Cook added, noting customer satisfaction of 99 percent made it a "beloved" product.

Overall, iPhone sales grew 14 percent over the same time last year, when the iPhone X was not yet on the market. iPhone average selling price grew to $728, from $655 last year in quarter two -- clearly the effect of iPhone X sales.

Commenting further on iPhone X, Cook likened the device's sales performance to the success of a football team.

"It's one of those things where a team wins the Super Bowl. Maybe you want them to win by a few more points, but it's a Super Bowl winner and that's how we feel about it," Cook said. "I could not be prouder of the product."

On Tuesday, Apple announced quarterly revenue of $61.1 billion, a 16 percent increase over the same time last year, and also 52.2 million iPhones sold in the quarter. It was Apple's strongest March quarter ever for revenue.

Analysts surveyed by Bloomberg had predicted earlier this week that the company would announce revenue of $61 billion, while Katy Huberty of Morgan Stanley had specifically predicted 52.3 million iPhones sold, so both were close to accurate.

Another prediction came true as well. The Wall Street Journal had predicted a "capital return bonanza," following the passage of tax reform, and Apple indeed announced a $100 Billion Share buyback program as well as 16 percent increase in its dividend.

Many of the other predictions related to Apple's performance in the June quarter, as the next iPhone cycle gets going. Apple on Tuesday released revenue guidance of between $51.5 billion and $53.5 billion for that quarter.
Rich031256
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Comments

  • Reply 1 of 49
    SpamSandwichSpamSandwich Posts: 29,266member
    Damn you, Apple analysts!
    racerhomie3Alex1Nwatto_cobra
  • Reply 2 of 49
    mejsricmejsric Posts: 130member
    It’s sad that people believe in rumors.
    racerhomie3StrangeDaysnetmagewatto_cobra
  • Reply 3 of 49
    gilly017gilly017 Posts: 56member
    The rumor mill never gets tired of having egg in the face. Take that Bloomberg yah bunch of schmucks.

    jdgazAlex1NStrangeDayswatto_cobra
  • Reply 4 of 49
    "CEO Tim Cook put the rumors of a "dead" release to rest in one fell swoop".
    Again.
    georgie01Alex1NStrangeDayswatto_cobra
  • Reply 5 of 49
    nunzynunzy Posts: 332member
    That's why it is being called a "super cycle".
    Alex1Nwatto_cobra
  • Reply 6 of 49
    DAalsethDAalseth Posts: 162member
    No analysts didn't blow the iPhone X predictions. They knew they were doing. They talked it and Apple down over the last two weeks. I suspect if you looked behind the scenes there was a lot of buying of AAPL. Today OMG the analysts were wrong! Look at the stock shoot up. Now they are quietly cashing in. Watch after hours. AAPL will likely drop as the manipulators sell.
    entropystmaygilly017williamlondonpscooter63georgie01Alex1Nadm1steveauwatto_cobra
  • Reply 7 of 49
    mr lizardmr lizard Posts: 23member
    Mark Gurman totally dropped the ball on this one. His narrative this last week has been so consistent and so certain about the iPhone X waning in demand; to the point where it seemed definite that he had a cast iron source. But these results just blew that narrative out of the water. 

    It’s hard to tell if he was under pressure from Bloomerg to pump the line, or if he genuinely believed he was onto something, or just took a punt. His predictions are usually rock solid but his credibility has taken a knock here. 
    Alex1NStrangeDayswatto_cobra
  • Reply 8 of 49
    SpamSandwichSpamSandwich Posts: 29,266member
    mr lizard said:
    Mark Gurman totally dropped the ball on this one. His narrative this last week has been so consistent and so certain about the iPhone X waning in demand; to the point where it seemed definite that he had a cast iron source. But these results just blew that narrative out of the water. 

    It’s hard to tell if he was under pressure from Bloomerg to pump the line, or if he genuinely believed he was onto something, or just took a punt. His predictions are usually rock solid but his credibility has taken a knock here. 
    Gurman's sources may be drying up just as I theorize Ming Chi Kuo's sources may have finally been discovered and kicked out.
    Alex1Nmacxpresswatto_cobra
  • Reply 9 of 49
    entropysentropys Posts: 1,054member
    I will regard my child raising a success if none of them ever decide to become a journalist. Scum sucking, bottom dwelling, narcissistic wannabes the lot of them.
    But don’t get me started on what I really think about the media.
    watto_cobra
  • Reply 10 of 49
    nunzynunzy Posts: 332member
    entropys said:
    I will regard my child raising a success if none of them ever decide to become a journalist. Scum sucking, bottom dwelling, narcissistic wannabes the lot of them.
    But don’t get me started on what I really think about the media.
    Even DED? Isn't he a journalist?
    watto_cobra
  • Reply 11 of 49
    SpamSandwichSpamSandwich Posts: 29,266member
    nunzy said:
    entropys said:
    I will regard my child raising a success if none of them ever decide to become a journalist. Scum sucking, bottom dwelling, narcissistic wannabes the lot of them.
    But don’t get me started on what I really think about the media.
    Even DED? Isn't he a journalist?
    Oh, I don't think he is or attempts to be a journalist. He's an advocate or polemicist in favor of Apple.
    muthuk_vanalingamgilly017Alex1Nradarthekatavon b7watto_cobra
  • Reply 12 of 49
    k2kwk2kw Posts: 1,249member
    nunzy said:
    entropys said:
    I will regard my child raising a success if none of them ever decide to become a journalist. Scum sucking, bottom dwelling, narcissistic wannabes the lot of them.
    But don’t get me started on what I really think about the media.
    Even DED? Isn't he a journalist?
    Oh, I don't think he is or attempts to be a journalist. He's an advocate or polemicist in favor of Apple.
    Yes , but (I admit) he was right about the iPhoneX,
  • Reply 13 of 49
    melgrossmelgross Posts: 30,386member
    Ah, something that aLways bothers me. We keep reading how Apple’s suppliers have had less revenue in the past quarter. I keep reminding people that most of Apple’s suppliers have other customers. Could it be that those other customers are responsible for falling demand? Ah, no, that’s not possible. It’s GOT to be Apple’s fault.

    Tim also reminds people that you can’t go by their suppliers to know what’s happening at Apple. For example, TSMC saw a decline in the last quarter, which they recently reported. Immediately, that was characterized as a major decline in Apple’s phone orders and sales decline, particularly for the iPhone X. But Apple is only about 25% of TSMCs sales. But the entire smartphone industry saw a decline in sales last quarter YoY - except for Apple.

    so I wave my finger at these people and say uh, uh, uh!
    edited May 1 SpamSandwichgilly017RonnnieOpscooter63Alex1NRayz2016watto_cobra
  • Reply 14 of 49
    k2kwk2kw Posts: 1,249member
    This is the New Normal.   Next year 2019Q2 will be even bigger due to the new XI , XI plus , and the LCD PlusPlus.
  • Reply 15 of 49
    Mike WuertheleMike Wuerthele Posts: 2,698administrator
    entropys said:
    I will regard my child raising a success if none of them ever decide to become a journalist. Scum sucking, bottom dwelling, narcissistic wannabes the lot of them.
    But don’t get me started on what I really think about the media.
    easy, there, killer. :D
    Alex1Nsphericpslicewatto_cobra
  • Reply 16 of 49
    FolioFolio Posts: 263member
    I’m glad that special dividend rumor was bogus. Apple got many better things to do than fatten warren buffet’s wallet. Not that I don’t admire warren. Note Berkshire never pays a cent in dividend 
    watto_cobra
  • Reply 17 of 49
    entropysentropys Posts: 1,054member
    nunzy said:
    entropys said:
    I will regard my child raising a success if none of them ever decide to become a journalist. Scum sucking, bottom dwelling, narcissistic wannabes the lot of them.
    But don’t get me started on what I really think about the media.
    Even DED? Isn't he a journalist?
    Oh, I don't think he is or attempts to be a journalist. He's an advocate or polemicist in favor of Apple.
    As long as he doesn’t hang out with journos, it’s zoK
    watto_cobra
  • Reply 18 of 49
    chasmchasm Posts: 585member
    You know you got today's information because of journalists, right?

    I think you meant to say "stock analysts with 'sources'" there ...
    Alex1NStrangeDaysjax44radarthekatwatto_cobra
  • Reply 19 of 49
    wood1208wood1208 Posts: 1,405member
    gilly017 said:
    The rumor mill never gets tired of having egg in the face. Take that Bloomberg yah bunch of schmucks.

    Even Forbe's two Apple related article writer idiot(Spensor and Gorden) who constantly bad mouse Apple and Apple products will need to eat their own S*t.
    edited May 1 gilly017RonnnieO
  • Reply 20 of 49
    SpamSandwichSpamSandwich Posts: 29,266member
    melgross said:
    Ah, something that aLways bothers me. We keep reading how Apple’s suppliers have had less revenue in the past quarter. I keep reminding people that most of Apple’s suppliers have other customers. Could it be that those other customers are responsible for falling demand? Ah, no, that’s not possible. It’s GOT to be Apple’s fault.

    Tim also reminds people that you can’t go by their suppliers to know what’s happening at Apple. For example, TSMC saw a decline in the last quarter, which they recently reported. Immediately, that was characterized as a major decline in Apple’s phone orders and sales decline, particularly for the iPhone X. But Apple is only about 25% of TSMCs sales. But the entire smartphone industry saw a decline in sales last quarter YoY - except for Apple.

    so I wave my finger at these people and say uh, uh, uh!
    Good point, Mel.
    Alex1Nhorvaticwatto_cobra
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