But Apple said that the iPhone X was the best-selling model in every week of the quarter - despite costing nearly $1,000 or £1,000. Not only have we seen rumors alleging that Apple in recent weeks has slashed iPhone X orders, disappointing revenue forecasts from some of Apple's key suppliers has only fanned the flames of pessimism amongst analysts and industry observers.
CEO Tim Cook attempted to assuage these fears with the report on Apple's profits, at $13.8 billion for the second quarter of 2018, and his belief that all phones sold will eventually be smartphones. After all, with iPhone sales only up about 2% year over year, it's not as if Apple completely smashed existing iPhone sales records.
The company's Services and Other Products verticals earned it $9.1 billion and $3.9 billion in revenue respectively, marking uniform revenue growth year-on-year across all verticals, barring Macs.
Total sales of iPhone models during the January-March period dropped 32 percent to 52.2 million units from 77.3 million units in the October-December period previous year.
"Since we split the line with the launch of iPhone 6 and 6 Plus in 2014", Tim Cook said, "this is the first cycle in which the top of the line iPhone model has also been the most popular". The iPhone X's $999 price tag also helped sales increase 16 percent from the second quarter in 2017 to $61 billion.
CEO Tim Cook said Apple customers purchased the iPhone X - released November 3, 2017 - more than any other model each week in the quarter.
"The iPhone X is a beloved product".
The company reported revenue of between $51.5 billion and $53.5 billion.
The company's Q3 2018 guidance ties in with high expectations of many analysts, and while Apple has a history of surpassing expectations, the company is facing a steady rise in competition in markets like China and India that are seeing the emergence of local players.
"Given our confidence in Apple's future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorization", said Luca Maestri, Apple CFO, in the earnings report transcribed by Seeking Alpha.