Apple falls below $1tn despite revenue and profit rise

The iPhone 5 was one of the best iPhones Apple ever built

The iPhone 5 was one of the best iPhones Apple ever built

In its fiscal fourth quarter, Apple said iPhone unit sales barely grew from a year earlier, even though new flagship devices came out in the period.

"Over the past two months, we've delivered huge advancements for our customers through new versions of iPhone, Apple Watch, iPad and Mac as well as our four operating systems", said Cook, "and we enter the holiday season with our strongest lineup of products and services ever".

Apple ($AAPL) reported disappointing iPhone sales and weak guidance for the all-important holiday quarter.

The dip in Apple's shares to $208.50 knocked around $67 billion off its value, and put Amazon and Microsoft Corp (MSFT.O) back in the mix in the race among the United States' big tech players to be the world's most valuable company.

Luca Maestri, the CFO of Apple said, "number of units sold in a quarter is not representative of underlying state of business". Apple will continue to report revenue for these categories.

The change apparently was triggered by Apple's frustration with investors' fixation on its iPhone sales while glossing over other key areas, such as the robust growth in its services division that collects commissions on app sales and handles subscriptions to its music-streaming service. Apple Stores will soon number 506, half of that outside the US.

'Apple will have trouble maintaining its recent valuation bump if the market clearly sees declines in shipments, ' said analyst Richard Windsor on his Radio Free Mobile blog. "We were pleased with Mac momentum in emerging markets, with strong growth in Latin America, in India, the Middle East and Africa, and Central and Eastern Europe", the Apple CEO said. Apple manufactures the iPhone SE and iPhone 6 in India which are one of its cheapest iPhones.

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Apple's revenue from services increased 17% YoY to US$9.98 billion.

Apple also unveiled a new version of its iPad Pro tablet with a screen that looks almost edge-to-edge and boasts a faster processor.

Apple offered no detailed breakdown of iPhone sales, but Cook said "the response has been powerful" to the new iPhone 10S models that sell for $1,000 and up.

Revenue for the period climbed 20 percent from previous year to $62.9 billion. Raising prices on hardware while pushing further into all kinds of cash-generating services combined to help Apple report a healthy 20% gain in revenue to nearly $63 billion. The unit sales report from Apple was used by many analysts. For over a decade, Apple was happy to share how many units it was selling because, since the days of the iPod, those numbers were so good.

Last month, Apple introduced a second-generation iPhone X, dubbed the iPhone XS, which began shipping at the end of September.

In the year-ago quarter (Q4 2017), Apple earned $52.58 billion in revenue. A recent report from the consulting firm said that Apple's "relentless focus on price increases is capping its overall volume growth".

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