Wide Apple handset lineup makes up for low iPhone X demand

In years past, demand for Apple Inc's latest flagship phone was critical to the company's results over the holiday shopping quarter.

That dynamic might be changing, however, as Apple's widening lineup of devices and services more than makes up for any tepidness in demand this quarter for its lead product, the $999 iPhone X.

On Tuesday, Apple's stock fell 2.5 percent to $170.57 after Taiwan's Economic Daily and several analysts suggested iPhone X sales in the fiscal first quarter would be 30 million units, 20 million fewer than initially planned by the company.

The cut in the forecast was not confirmed, and the stock regained ground on Thursday, hitting $171.82 by midday. The mean revenue estimate for the holiday quarter among 30 analysts remains at $86.2 billion, near the high end of Apple's forecast of $84 billion to $87 billion.

Apple declined to comment.

Part of the support for Apple may reflect a change in its business strategy.

Releasing two new models and keeping older ones have made Apple less dependent on its flagship product. Apple shareholder Ross Gerber, chief executive of Gerber Kawasaki Wealth and Investment Management in Santa Monica, California, said the higher price and better margins on the iPhone X will reduce fears of a sales decline.

"We know that Apple's strategy was different this quarter by releasing two phones, the iPhone 8 and the iPhone X, and I think combined sales will be in line with what people expect," Gerber said.

Apple also has fattened its portfolio of accessories and other devices, from its AirPods wireless headphones to a new Apple Watch with cellular data features.
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Apple delivers higher profit as iPhone X launches on Friday

Apple profits rose on the back of strong iPhone sales in the past quarter, the company reported today, as the US tech giant begins selling its newest flagship handset.

Net profit rose 19 per cent from a year ago to $10.7 billion in the fiscal fourth quarter to September 30, Apple said. Revenues were up 12 per cent to $52.6 billion.

Release of the earnings figures pushed Apple shares up more than three percent to $173.20 and came as iPhone X models began hitting the market in some time zones.

Apple sold more iPhones, iPads and Mac computers than it did in the same quarter a year earlier. Smartphones sales climbed by about a million units to 46.7 million in the three months winding up the California company's fiscal year, according to the earnings report.

"We're happy to report a very strong finish to a great fiscal 2017, with record fourth-quarter revenue, year-over-year growth for all our product categories, and our best quarter ever for services," Apple chief executive Tim Cook said in the release.

"We're looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn't be more excited as we begin to deliver our vision for the future with this stunning device."

Apple closed out its fiscal year posting a full-year profit of $48.35 billion, up 5.8 per cent, on revenues of $229 billion, a rise of 6.3 per cent from the previous year.
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Google Pixel 2 launch hampered by display, pricing and shipping issues

The launch of Alphabet Inc's second-generation Google Pixel smartphones has been hampered by display screen problems and pricing and shipping issues, prompting the company to open an investigation and issue multiple apologies to customers.

The Pixel 2 and Pixel 2 XL, which start at $649 and debuted in stores on Thursday, are the lynchpin of Google's efforts to take on Apple Inc's iPhone directly.

Early Pixel 2 users have voiced frustration with mishaps, including a potentially serious problem with the screen.

Google said on Sunday it is investigating whether graphics are burning into the display of the Pixel 2, following a report on the AndroidCentral blog detailing the issue after a week of use. Burn-in, which usually becomes a problem only after several years of activity, can make it difficult to see information on the display.

Google likely would need to halt production if there is a problem, said Ryan Reith, a mobile device analyst at research firm IDC.

"We take all reports of issues very seriously, and our engineers investigate quickly," Mario Queiroz, Google's vice president for Pixel product management, said in an emailed statement to Reuters. "We will provide updates as soon as we have conclusive data."
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iPhone X debut: Should Apple worry as model 7 outsells 8 in US?

Apple Inc’s older iPhone 7 models are outselling the recently launched iPhone 8 ahead of the early November debut of the premium iPhone X, broker KeyBanc Capital Markets said, citing carrier store surveys.

Traditionally, new editions of the iPhone have sold quickly as fans queue for the latest upgrade, but early surveys have added to chatter that the iPhone 8 is not proving as popular as its predecessors.

US wireless carrier AT&T said last week its third-quarter postpaid handset upgrades were fewer by nearly 900,000 from a year ago, and brokerage Jefferies attributed it to weak iPhone 8 demand.

“Many respondents indicated that a meaningful portion of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone,” KeyBanc analyst John Vinh wrote in a client note.

Vinh also said feedback from stores indicated that customers were waiting to purchase the iPhone X or to compare the iPhone X with other models before buying the iPhone 8.

Apple last month introduced the iPhone 8 and iPhone 8 Plus, which resemble the iPhone 7 but have a glass back for wireless charging. While iPhone 8 starts from $699 in the United States, iPhone 7 is retailing from $549 after a price cut.
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Apple's iPhone 8 launch: 7 stocks to watch out for today

When Apple Inc unveils new iPhones on Tuesday at its Apple Park “spaceship” campus, there may be important clues for the watchers of seven semiconductor stocks.

Apple exerts a sun-like gravitational pull on the global electronics supply chain, affecting the pricing of commodities like flash memory chips - it consumes 18 percent of global supply. The iPhone maker can make or break small, specialty chip suppliers.

The final tally of semiconductor winners and losers will not be known until the devices ship and analysts rip them apart to examine the circuit boards. That will give insight into matters like the continued battle between Intel Corp and Qualcomm Inc to supply so-called modem chips for mobile data.

Even the limited technical information Apple gives on stage tomorrow could shed light on how several other companies are faring. Here are seven stocks to watch during today’s launch.

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