The big story over the past six months in regards to Apple earnings has been that iPhone sales are declining. Well, that ends today.
Apple just posted strong financial results for the first quarter of 2017. In a letter to investors on Tuesday, CEO Tim Cook said: “We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac, and Apple Watch."
Apple sold 78 million iPhones during the 90-day period that ended in January. Cook also said revenue from Apple services grew strongly over the last year, thanks to record customer activity on the App Store and more. Apple had a services revenue of $7.2 billion, which actually exceeds Facebook's total revenue of $6.8 billion in the most recently reported fourth quarter.
Going back to iPhones, Apple posted weak fourth-quarter sales last October. At the time, sales had dropped 13 percent year over year to 45.5 million units. Some critics questioned Apple's ability to innovate, while others noted smartphone sales have softened for everyone.
Still, it was hard not to notice that Apple -- after more than a decade of revenue gains -- was no longer posting record-setting sales not only for iPhone, but also the iPad and Mac. On Tuesday, Apple said its Mac division sold 5.3 million units (the exact same number sold this time last year), while iPad sales hit 13 million during the holiday period, down from 16.1 million in the year-ago quarter.
While the iPad and Mac still need some love, it seems that the iPhone 7 has put an end to the company's phone-sales slump for now.