Apple projects record holiday sales on iphone X demand

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The device category rose about 2% during Q4 as compared to a year ago, which seems like a modest amount considering no one expected the iPhone 8 and iPhone 8 Plus to do as well as they did.

Apple notes in their earnings report that Services revenue in their fiscal 4th quarter of 2017 included "a favorable one-time adjustment of $640 million due to a change in estimate based on the availability of additional supporting information".

Cook and company say they expect between $84 billion and $87 billion in revenue next quarter. The tech giant brought in a whopping $52.6 billion, exceeding the $50.7 billion that was expected in Q4.

Apple did not disclose how many customers had placed preorders of the iPhone X, nor did its release comment on speculation iPhone X demand has hurt iPhone 8 sales.

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Apple edged closer to a $1 trillion valuation today as the technology giant's quarterly earnings blew away expectations, pushing its share price to a new high in after-hours trading. That division includes content, AppleCare, and Apple Pay, but the App Store is the "jewel" of the services segment, Pacific Crest analyst Andy Hargreaves wrote earlier this year.

Apple Chief Financial Officer Luca Maestri told Reuters on Thursday the company was "quite happy" with how manufacturing of the iPhone X was progressing, noting that "production is growing every week, and that's very, very important during a ramp period".

The company also showed off other new products in the back half of this year, amid back-to-school shopping season: the Apple Watch Series 3 with a cellular connection, its thinnest and lightest MacBook yet, and the Apple TV 4K. Soon after people started pre-ordering the iPhone X on October 27, shipping times lengthened to as many as six weeks. The previous record was set in 2015 when Apple shipped 231 million iPhones, thanks to larger models introduced just before the fiscal year began.

During its most recent quarter, Apple sold 10.3 million iPads and 5.3 million Macs, representing a year-over-year increase of 14% and 25%, respectively. "We sold more iPhones than we expected", he said.

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