iPhone X boosts Apple revenues

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The higher margins afforded by the new iPhone X led to a huge 16 per cent increase in revenues to $61.6bn at Apple.

iPhone sales grew by 3 percent to 52.2 million during the second quarter of 2018, but revenue jumped by 14 per cent thanks the iPhone X, which is the most expensive smartphone the company has ever produced.

iPhone X sales

iPad sales were up 2 per cent to 9.1 million, while Mac sales fell 3 per cent to 4 million. Service revenue, which includes Apple Music and the App Store, continues to impress with a jump of 31 per cent to $9.2 billion, while ‘Other’ products, which covers the Apple Watch and accessories, increased by 38 per cent to $4 billion.

Apple has never broken this figure down any further, making it difficult to know exactly how many Apple Watch devices it has shifted to date.

"We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables,” said Tim Cook, Apple CEO. “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.”

For the third quarter, Apple is predicting revenues of between $51.5 billion and $53.5 billion.

Although the iPhone X is boosting Apple’s balance sheet, analysts at IHS market have suggested that demand for the expensive phone is slowing and that the company now sells nine iPhone models, which could cannibalise sales of its latest devices.

The company is the world’s second largest smartphone manufacturer behind Samsung and with a clear lead over third-placed Huawei.