Apple’s Profit Relying Less on iPhoneX Sales

In prior years, Apple Inc. (NASDAQ: AAPL) relied heavily on the demand for the latest flagship phone released over the holiday shopping quarter to help boost profit. However, the company’s recent lineup of new devices and services have been expanding, making up for the slow demand for their leading product for this quarter, the iPhoneX. On Tuesday, Apple’s stock dropped 2.5% to $170.57 following a suggested forecast of iPhoneX sales in the fiscal first quarter would total to 30 million units which was 20 million fewer than initially predicted by the company.

On Thursday, Apple’s stock finally regained ground reaching $171.82. Analysts estimates that mean revenue for the holiday quarter would still remain at $86.2 billion which reaches to Apple’s forecast of $84 billion to $87 billion.

Apple’s recent release of two new models and keeping older ones has made the company less reliant on the flagship product. Shareholders believe that the higher price of $999 and better margins on the iPhoneX will reduce fears of a sales plunge. The company also expanded their variety of accessories and other devices that include the AirPods wireless headphones and the newly released Apple Watch with cellular data features. Apple’s “other products” segment has also grown 16% to $12.8 billion last year. Shoppers who purchase these items are also likely to buy services from the App Store as well as Apple Music. Apple’s services segment has grown 23% to $29.9 billion last year.

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