During the holiday season, Apple managed to bring in $84 billion, compared of $88 billion a year ago. Of them, $51 billion were from iPhones, while the second-best performing category is Services with $10.875 billion.
In a press release Apple announced the 33% increase in sales of Wearables, Home and Accessories is an all-time high, along with the Mac sales which jumped 9%.
The CEO of Apple Inc Tim Cook said while there is a disappointment in missing the revenue targets, “Apple is managed for the long term and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide.” This means the company knows the iPhone business is unlikely to improve anytime soon and it has to rely on other elements of its portfolio.
On wednesday, Tim Cook said Apple will adjust foreign prices in some markets by resetting them at or close to what they were one year before in local currencies. Effectively that means Apple will absorb the cost of the strengthening dollar.
The announcement also stated there are 1.4 billion active installed devices across the globe, marking an all-time high record for Apple. Although this is “a testament to the satisfaction and loyalty of [Apple] customers,” one can only ask how much can this number rise with the high retail prices of the iPhones.
Tim Cook said that the rise in the dollar is hurting iPhones business. In the company’s quarterly earnings call on Wednesday, Cook also highlighted the impact of foreign exchange problems in Turkey, where he said the local lira had depreciated by 33 per cent against the dollar and Apple’s sales were down by $700 million from the previous year. In November, Apple also cited currency pressure on its prices in Brazil, India and Russia.
Chief Financial Officer of Luca Maestri said the price adjustments may not extend to its services business, which includes Apple Music and the App Store.