An Apple Store in Santa Monica, Calif. (Photo: Ina Fried/Axios)

Buoyed by the release of the iPhone X, Apple reported record quarterly revenue and per-share earnings, but its outlook for the current quarter was less than some analysts had been forecasting. Plus, iPhone unit sales fell short of expectations, dropping slightly from a year ago.

Why it matters: Apple watchers have been looking for signs on whether the iPhone X would lead to a typical upgrade cycle or to a greater-than-usual "super cycle."

The company reported per-share earnings of $3.89, on revenue of $88.3 billion, up 13% from the prior year. Analysts were expecting Apple to report per-share earnings of $3.82 on revenue of $86.3 billion, per Zacks.

For the current quarter, Apple said to expect revenue of between $60 billion and $62 billion. Analysts had been looking for Apple to turn in closer to $65 billion.

Shares were up slightly in after-hours trading after earlier trading down more than 1%.

iPhone sales disappoint: Apple sold 77.3 million iPhones, down 1% from a year ago. Revenue from iPhones was up 13% from the prior year on the back of the iPhone X. The higher-priced model helped Apple grow the average selling price of the iPhone to nearly $800 — up roughly $100 from a year ago.

"iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November," CEO Tim Cook said in a statement.

As for other product areas:

  • Apple sold 13.1 million iPads, up 1%, while iPad revenue was up 6%
  • Apple sold 5.1 million Macs, down 5% from the prior year
  • Services revenue rose 18% to nearly $8.5 billion
  • Apple Watch had its best quarter ever
  • Wearables, including watches, AirPods and Beats headphones, were up 70 percent from a year ago, helping the "other products" revenue top $5 billion for the first time.

From a geographic perspective, Apple saw revenue up double digits in all regions, including greater China, where the company had been struggling until recently. In emerging markets outside China, revenue was up 25%, CFO Luca Maestri said on a conference call.

Update: On the conference call with analysts, CEO Tim Cook noted:

  • Apple now has 240 million subscribers to iCloud, Apple Music and other subscription services up 30 million from the prior quarter.
  • Apple Pay now accepted at nearly half of U.S. retail locations.
  • Apple Pay is expanding to Brazil "in the coming months."
  • More than 2,000 ARKit apps are now in the store.

Cook said Apple has the “best lineups of products and services we’ve ever had” and teased a new initiative to show how business can be a force for good.

Go deeper

Updated 2 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Eniola Odetunde/Axios

  1. Global: Total confirmed cases as of 8 p.m. ET: 11,982,883 — Total deaths: 547,931 — Total recoveries — 6,511,854Map.
  2. U.S.: Total confirmed cases as of 8 p.m. ET: 3,040,957 — Total deaths: 132,195 — Total recoveries: 953,420 — Total tested: 36,866,416Map.
  3. Public health: Houston mayor cancels Republican convention over coronavirus concerns Deaths are rising in hotspots — Déjà vu sets in as testing issues rise and PPE dwindles.
  4. Travel: United warns employees it may furlough 45% of U.S. workforce How the pandemic changed mobility habits, by state.
  5. Education: New York City schools will not fully reopen in fallHarvard and MIT sue Trump administration over rule barring foreign students from online classes.
  6. 🎧 Podcast: A misinformation "infodemic" is here.

Transcripts show George Floyd told police "I can't breathe" over 20 times

Photo: Gary Coronado/Los Angeles Times via Getty Images

Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.

Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.

2 hours ago - Health

Fighting the coronavirus infodemic

Illustration: Sarah Grillo/Axios

An "infodemic" of misinformation and disinformation has helped cripple the response to the novel coronavirus.

Why it matters: High-powered social media accelerates the spread of lies and political polarization that motivates people to believe them. Unless the public health sphere can effectively counter misinformation, not even an effective vaccine may be enough to end the pandemic.