Published: Sun, November 04, 2018
Markets | By Otis Pena

Apple market value tests $1 trillion level amid selloff

Apple market value tests $1 trillion level amid selloff

The Average Selling Price (ASP) of the iPhone rose last quarter to $793, up on the previous quarter ASP of $724, and up significantly on the year-ago quarter ASP figure of $618, and a hair's breadth away from the Q1 18 peak of $796. At the same time, Apple said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019, a step toward becoming more of a services business.

The stock was down on Friday, following that miss and the news that Apple will no longer break out individual iPhone, iPad and Mac sales in its earnings reports.

The dip in Apple's shares to $208.50 knocked around $67 billion off its value, and put Amazon and Microsoft Corp (MSFT.O) back in the mix in the race among the United States' big tech players to be the world's most valuable company. The tech giant also shook investors by saying it will no longer disclose the number of iPhones it sells each quarter.

Instead, Apple continues to try to focus investors on the strong sales growth for supplementary services, including Apple Music, Apple Pay and iCloud.

Apple, however, still has no timeline on the launch of its retail stores in India.

Apple Inc.'s (AAPL) decision to overhaul its reporting structure has stunned investors and analysts.

Evidence of that could be seen in Apple's fourth-quarter results. It lists iPhone, iPad, Mac, Services, and Other products separately and investors like the transparency this provides.

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"For the new Pilot program, Apple will only be offering repairs for vintage devices based on part availability", 9to5Mac notes.

Apple offered no detailed breakdown of iPhone sales, but Cook said "the response has been powerful" to the new 10S models that sell for USD1,000 and up.

To be sure, the iPhone is still Apple's biggest revenue generator, making the company $37 billion in Q4 2018, or more than half of overall revenue. The pricier iPhone XS and XS Max went on sale in the final days of the September quarter, and the more affordable XR went on sale last month. The results were good, with Apple raking in record revenue - up 18 per cent quarter-on-quarter, and 20 per cent year-on-year.

For the current quarter Apple reported earnings of $2.91 per share on revenue of $62.9 billion, beating analyst estimates of earnings per share of $2.78 on $61.57 billion in revenue.

When Xbox sales slumped Microsoft stopped telling the market how many they had actually sold, now Apple is taking a leaf out of Microsoft's book by refusing to say how many iPhones they have sold, the market responded by slashing their share value by almost 7%.

"Q4 revenue was up 29 per cent over a year ago, an increase of over $8 billion to a new September quarter record fuelled by continued momentum for iPhone 8, 8 Plus and X, and the very successful launch of iPhone XS and iPhone XS Max", Cook added. "As demonstrated by our financial performance in recent years, the number of units sold in any 90-day period is not necessarily representative of the underlying strength of our business".

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