This Thursday, Apple is set to report their quarterly earnings. Reporting earnings every quarter is a common business practice, but this one will be different: analysts are forecasting a net incoming of at least 19 billion dollars, making it their most profitable quarter in corporate history.
So, what’s causing the huge increase in profitability? All signs point to one answer: the iPhone X. The first fiscal quarter, which is from the 1st of October until the 31st of December, was the quarter in which the iPhone X was released to the public. Apple earned 18 billion dollars in the previous quarter, but with huge iPhone X sales, predictions have been set to an even higher bar. Especially as Christmas and New Year is a prime time for consumers to buy new products either for themselves or for others.
Market researchers, who have conducted a detailed analysis of expenditure, suggest that Apple has shipped a whopping 29 million iPhone Xs in the first quarter alone. This means that it would’ve been their best-selling smartphone in the October to December period, and will subsequently make up more than two-thirds of the tech giant’s total sales.
But, is it all that surprising? The iPhone X was released at a high price – nearly 1 thousand USD or GBP depending on your location – and the higher-end models with more data storage coming in at a few hundred more. The increased price of a new model means that the average selling price of an iPhone could jump to a new record above the current 800 dollar average, thus increasing overall profitability.
It’s not just Apple who will release their financial earnings this week. Other high-earning tech companies such as Amazon, Facebook, and Google’s parent company Alphabet, will also let their profits be known to the public.