Apple has announced its financial results for the second quarter of 2017, and with revenue of over $52.9 billion, the tech giant is clearly doing just fine.
iPhone, however, is another matter, though there’s no reason for Apple to worry just yet, especially as the company inches ever closer to its biggest product launch of the year – the iPhone 8.
But before we get there, here are the Q2 2017 figures: Apple sold 50.8 million iPhones, which CEO Tim Cook said was in line with internal expectations. This is, however, below the 52 million smartphones Wall Street expected the tech giant to sell in the quarter ending on April 1.
Materially, Apple reported iPhone sales were down 1% from the same quarter last year (Q2 2016), when the company sold 51.1 million phones. Essentially, iPhone sales are flat year-on-year.
The sales drop was far more dramatic from the quarter previous at 35%, though this isn’t as shocking as it seems at first blush. The first quarter encompasses the holiday shopping period, when the newest model iPhones fly off of store shelves. It is traditionally Apple’s strongest quarter, by a lot.
Apple put an optimistic spin on Q2’s just-below-expectations sales. The company continues to see “robust demand for the ,” a model Cook said customers gravitated towards more so than the standard . The company also saw “great customer response” to the models launched in March.
Of course, all this is in the lead up to the iPhone 8, a massive product for Apple as it marks 10 years of iPhone. Customers who haven’t purchased the iPhone 7 or iPhone 7 Plus are holding off until Apple’s next iPhone goes on sale (Cook said so himself on the company’s earnings call), and sales in Q3 2017 will no doubt be even lower as everyone waits for the iPhone 8.
This could set Apple up for a monster Q1 2018, especially if the iPhone 8 is as innovative as reports suggest. With new features like wireless charging, a glass back, vertically stacked dual cameras, augmented reality capabilities and a curved screen all rumored for the new phone, Apple could quickly get back to breaking sales records.