Apple regained the throne as the world’s top smartphone seller for the first time in five years beating out rival Samsung in units shipped for the holiday quarter and increasing revenues with a strong showing for its new, top-of-the-line iPhone 7 Plus.
The iPhone sales figures, and a profit of almost $18 billion, both together beat Wall Street expectations, sending its shares up 3% in after-hours trading.
But the gains were tempered by Apple’s careful outlook for the current quarter, which it mainly attributed to the strong US dollar, which hurts organization like Apple that sell a majority of their products overseas, by driving them to raise prices, which discourage unit sales, or sacrifice margins.
Apple sold 78.29 million iPhones in the first fiscal quarter ended December 31, up from 74.78 million the year before. Analysts and experts on average had expected 77.42 million, as per the research firm FactSet StreetAccount.
Beating Samsung Electronics’ 77.5 million smartphone sales in the quarter, as per tech data firm Strategy Analytics, the first time that has happened since the fourth quarter of 2011.
The results, which reflected the first full quarter of iPhone 7 sales, come when worldwide demand for smartphones is slowing and cheaper Android options are flooding the market. Apple may likewise have benefited from Samsung’s much-publicized recall of the its fire-prone Galaxy Note 7.
Apple is intensively dependent on the success of iPhones, which represents more than two-thirds of its total revenue.
Analysts and investors have already set their sights on Apple’s 10th-anniversary iPhone, which is required to highlight better touchscreen technology, wireless charging and a shift to a higher-resolution OLED display.
Apple chief executive Tim Cook said demand was especially high for the larger iPhone 7 Plus in the fiscal first quarter.
Revenue in the services business – which includes the App Store, Apple Pay and iCloud – jumped 18.4% to $7.17 billion, helped by the popularity of games, including Pokemon Go and Super Mario Run, and increased revenue from subscriptions.
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Sameeksha Bhardwaj, From ITvoir News Desk