Apple Misses iPhone Sales Record, Still Makes More Money

Despite falling a million units short of its previous sales record, Apple had its biggest iPhone quarter ever in Q1 2018 (ending Dec. 30, 2017). Driven by the high price of the iPhone X, which according to Apple’s statement has been the top-selling iPhone ever since it started shipping in November, the average iPhone selling price increased from $695 to $796 year-over-year, propelling iPhone sales revenue to a record $61.6 billion for the holiday quarter.

Apple’s smartphone business accounted for 70 percent of the company’s revenue in the past quarter, which explains why investors and reporters are soaking up any rumor about potential weaknesses in iPhone demand. Much of the company’s future growth will depend on how its iPhone business develops, because none of Apple’s other products seems big enough to fill the iPhone’s shoes anytime soon.