Apple posts record earnings despite dip in iPhone sales

Feb. 2 (UPI) -- Apple said Thursday its revenue during its first fiscal quarter of 2018 was the biggest in company history despite lower than expected sales of iPhones.

The company posted quarterly revenue of $88.3 billion, which was an increase of 13 percent from the first quarter of 2017. International sales accounted for 65 percent of the quarter's revenue.

"We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup," Apple CEO Tim Cook said in a statement.

Apple also posted a company record for quarterly earnings per diluted share at $3.89.

According to MacWorld, Apple sold 77.3 million iPhones over the holiday quarter, which was about 1 million fewer than the first quarter of 2017, despite the highly publicized release of the iPhone X. But revenue still increased by more than $7 billion, in part because of the iPhone X's higher retail price of between $999 and $1,149.

So while Apple sold a few less iPhones, the ones they sold cost more.

"IPhone X was the most popular phone and since we launched it in early November, for every week it's been the top selling iPhone," Apple Chief Executive Officer Tim Cook said in an interview with Bloomberg. "Couldn't be prouder of it."

Apple also saw substantial overseas sales, including an 11 percent increase in Japan and a 26 percent jump in China.

Despite the record revenue earnings, Apple shares fell about 1 percent Thursday, closing at $167.78 in New York on Thursday.

Bloomberg reported that the stock dropped about six percent in days leading up to the latest earnings report.