iPhone sales lowest in 7 years, forecasts strong revenue

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Apple said it expects revenue for the current fiscal fourth quarter of between $61 billion and $64 billion, compared with analyst estimates of $61.02 billion.

"We want to continue to be here," Cook told analysts on a post-earnings call, adding that the company is investing in capacity to manufacture $6,000 Mac Pros in the United States

The Wall Street Journal reported in June that Apple is shifting manufacturing of its new Mac Pro desktop computer to China from Texas. Services revenue in the fiscal third quarter rose 12.6% to $11.46 billion , a new record. It missed expectations of $11.73 billion, according to IBES data from Refinitiv, but Cook told Reuters that after factoring out a one-time payment from lawsuits a year ago and foreign-exchange effects, the services segment growth rate would have been 18%.

Apple did not give the number of active Apple devices, but in January it said it was 1.4 billion, with 900 million of those being iPhones. Investors used the number, called the installed base, as a proxy for how many subscribers it can gain for its services business. Cook told investors on a conference call Tuesday that Apple has 420 million paid subscribers to its own services and third-party apps. The company has set a goal of 500 million by 2020.

 

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