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Expensive iPhone powers Apple to double-digit growth

Apple has managed to beat market forecasts, despite selling fewer iPhones than expected in the second quarter of 2018.

In all, the iPhone X and MacBook Pro manufacturer reported a revenue jump of 17% year-on-year, leading to a profit of $53.3 billion (around £40.6 billion). Apple reported double-digit growth in every market in operates in, aside from Japan.

Related: Best iPhone 2018

This growth came despite the company actually selling fewer iPhones than forecast. iPhone sales for the quarter grew by just 1%, but the higher retail price led by the most popular model, the £999 iPhone X, meant that Apple wound up making more money, despite shifting fewer units.

The lower than expected sales figures weren’t completely without consequence − fewer iPhones being means that Apple has dropped out of the top-two in smartphone sales for the first time in seven years.

However, the world’s most valuable company saw revenue growth of 31% from the service part of its business, which includes phone-related extras like the App Store, Apple Music, AppleCare, iTunes and Apple Pay.

For these, profits hit $11.5 billion – leaving the firm on target for Tim Cook’s aim of making services contribute $14 billion to Apple by 2020.

It’s a similar story to arch-rival Samsung, which also reported lower than expected sales of its flagship Galaxy S9 phone, but still made around £10 billion profit overall.  

Related: iPhone 11 rumours

Samsung’s response to this was to promise “a new Galaxy Note earlier than usual”, offering “exceptional performance for a reasonable price.” How Apple will respond to its own stagnating phone sales will become clear in September, when the company is expected to unveil a new range of mobiles, including the iPhone 11.

Can Apple’s growth continue for another year? Let us know on Twitter: @TrustedReviews

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