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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The action was down on Friday as a result of this failure and the news that Apple will no longer disclose individual sales of iPhone, iPad and Mac in its earnings reports. The mixed quarter also included lower-than-expected forecasts for the first quarter of 2019, the very important vacation quarter."data-reactid =" 23 ">The action was down on Friday as a result of this failure and the news that Apple will no longer disclose individual sales of iPhone, iPad and Mac in its earnings reports. The mixed quarter also included lower-than-expected forecasts for the first quarter of 2019, the very important vacation quarter.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But Apple is ready for this moment. It was therefore clear to the company that iPhone sales would not maintain the high levels of growth that Apple has seen over the years. After all, there are only a lot of iPhone buyers in the world. That's why he created an ecosystem that locks users and encourages them to stick to Apple's services and accessories such as iTunes and Apple Watch."data-reactid =" 24 ">But Apple is ready for this moment. It was therefore clear to the company that iPhone sales would not maintain the high levels of growth that Apple has seen over the years. After all, there are only a lot of iPhone buyers in the world. That's why he created an ecosystem that locks users and encourages them to stick to Apple's services and accessories such as iTunes and Apple Watch.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Thus, unless there is a massive exodus of Apple hardware users, the company will continue to grow in the future."data-reactid =" 25 ">Thus, unless there is a massive exodus of Apple hardware users, the company will continue to grow in the future.
Higher prices are here to stay
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The new Apple iPhones – the XR, XS and XS Max – are expensive. The XR, which is supposed to be the smartphone for all of us, starts at $ 749. It's $ 50 more than the iPhone 8, the phone it's supposed to replace. The iPhone XS, meanwhile, starts at $ 999, while the iPhone XS Max starts at $ 1,099."data-reactid =" 27 ">The new Apple iPhones – the XR, XS and XS Max – are expensive. The XR, which is supposed to be the smartphone for all of us, starts at $ 749. It's $ 50 more than the iPhone 8, the phone it's supposed to replace. The iPhone XS, meanwhile, starts at $ 999, while the iPhone XS Max starts at $ 1,099.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And Apple's followers are more than willing to shell out this extra money. The average selling price of Apple's iPhone for the fourth quarter of 2018 was $ 739, up more than 41%."data-reactid =" 28 ">And Apple's followers are more than willing to shell out this extra money. The average selling price of Apple's iPhone for the fourth quarter of 2018 was $ 739, up more than 41%.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "However, total iPhone shipments were below Wall Street expectations. Analysts expected the technology giant to sell 48.4 million iPhones in the fourth quarter, but the company has moved 46.9 million handsets. Apple also offered lower guidance for the first quarter of 2019 and announced that it would stop parting from iPhone sales in its earnings report. This weak focus, coupled with missed sales, may have led some investors to believe that Apple may be facing serious problems."data-reactid =" 29 ">However, total iPhone shipments were below Wall Street expectations. Analysts expected the technology giant to sell 48.4 million iPhones in the fourth quarter, but the company has moved 46.9 million handsets. Apple also offered lower guidance for the first quarter of 2019 and announced that it would stop parting from iPhone sales in its earnings report. This weak focus, coupled with missed sales, may have led some investors to believe that Apple may be facing serious problems.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""It's inevitable that if Apple continues to rely on smartphone sales, they will slow down unless [Apple] continues to increase the average selling price, and I do not think we've seen the limits of the average selling price, "said Julie Ask, vice president and senior analyst at Forrester. "data-reactid =" 30 ">"It's inevitable that if Apple continues to rely on smartphone sales, they will slow down unless [Apple] continues to increase the average selling price, and I do not think we've seen the limits of the average selling price, "said Julie Ask, vice president and senior analyst at Forrester.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Apple's decision to raise the price of its iPhone has, however, clearly been made in anticipation of stagnant sales in mature markets such as the United States, Europe and China's increasingly congested smartphone market. With the success of the iPhone X after the launch of last year, Apple also understood that it could sell expensive handsets and that people would consume them again, which means that these high prices are there for good."data-reactid =" 31 ">Apple's decision to raise the price of its iPhone has, however, clearly been made in anticipation of stagnant sales in mature markets such as the United States, Europe and China's increasingly congested smartphone market. With the success of the iPhone X after the launch of last year, Apple also understood that it could sell expensive handsets and that people would consume them again, which means that these high prices are there for good.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It is true that Apple's decision to no longer sell iPhone sales will make it more difficult to analyze this part of the business, which may make investors nervous. Apple's strategy, however, seems to be that Wall Street focuses less on total iPhone sales and sees the company as more than just a smartphone maker."data-reactid =" 32 ">It is true that Apple's decision to no longer sell iPhone sales will make it more difficult to analyze this part of the business, which may make investors nervous. Apple's strategy, however, seems to be that Wall Street focuses less on total iPhone sales and sees the company as more than just a smartphone maker.
Services as a driver
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Apple CEO Tim Cook and the company have been working on this change for some time. In his previous visits to earnings, Cook said Apple's service business was a growing part of its business, a company that could be part of the Fortune 100 group if it were decoupled."data-reactid =" 34 ">Apple CEO Tim Cook and the company have been working on this change for some time. In his previous visits to earnings, Cook said Apple's service business was a growing part of its business, a company that could be part of the Fortune 100 group if it were decoupled.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And it is the service part of the company that could become the real engine of Apple with the slowdown in the growth of the iPhone. Since the third quarter of 2015, Apple's service sector has experienced double-digit growth over 12 months. "data-reactid =" 35 ">And it is the service part of the company that could become the real engine of Apple with the slowdown in the growth of the iPhone. Since the third quarter of 2015, Apple's service sector has experienced double-digit growth over 12 months.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the fourth quarter of 2018, services that encompass everything from iTunes, Apple Music, Apple Store, Apple Care, Apple Pay, and iCloud, generated $ 10 billion in revenue, the highest level in the segment. Since Apple is expected to launch its own streaming service in 2019 and more customers are using Apple Music, services could continue to grow for a while."data-reactid =" 36 ">In the fourth quarter of 2018, services that encompass everything from iTunes, Apple Music, Apple Store, Apple Care, Apple Pay, and iCloud, generated $ 10 billion in revenue, the highest level in the segment. Since Apple is expected to launch its own streaming service in 2019 and more customers are using Apple Music, services could continue to grow for a while.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Admittedly, the iPhone is still the main revenue generator of Apple, which earned him $ 37 billion in Q4 2018, more than half of the overall turnover. But with already more than 2 billion iOS devices on the market, services such as Apple Music and iCloud have a ready-to-use audience that they can tap."data-reactid =" 37 ">Admittedly, the iPhone is still the main revenue generator of Apple, which earned him $ 37 billion in Q4 2018, more than half of the overall turnover. But with already more than 2 billion iOS devices on the market, services such as Apple Music and iCloud have a ready-to-use audience that they can tap.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Then there is the rumor that Apple will launch its own streaming service in 2019. This offer would include $ 1 billion in original programming by major film creators and television channels like Steven Spielberg. The Information states that Apple will first launch its service, which will be directly competing with Netflix in the United States, and that it will then be extended to 100 other countries."data-reactid =" 38 ">Then there is the rumor that Apple will launch its own streaming service in 2019. This offer would include $ 1 billion of original programming by major film creators and television channels like Steven Spielberg. The Information states that Apple will first launch its service, which will be directly competing with Netflix in the United States, and that it will then be extended to 100 other countries.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If this takes off, the service segment of Apple could far exceed the forecasts. Cook says that services should be a 50 billion dollars of business by 2020."data-reactid =" 39 ">If this takes off, the service segment of Apple could far exceed the forecasts. Cook says that services should be a 50 billion dollars of business by 2020.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While Apple's iPhone sales may not be experiencing the kind of intense growth that the company has experienced at the peak of handsets, do not count the tech giant at the moment."data-reactid =" 40 ">While Apple's iPhone sales may not be experiencing the kind of intense growth that the company has experienced at the peak of handsets, do not count the tech giant at the moment.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "More from Dan:"data-reactid =" 41 ">More from Dan:
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Send an email to Daniel Howley at [email protected]; follow him on Twitter at@DanielHowley.Follow Yahoo Finance on Facebook, Twitter, Instagram and LinkedIn."data-reactid =" 48 ">Send an email to Daniel Howley at [email protected]; follow him on Twitter at@DanielHowley.Follow Yahoo Finance on Facebook, Twitter, Instagram and LinkedIn.
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