The Cupertino, California-based company benefited in its fiscal first quarter from the November launch of its newest smartphone.
iPhone sales fell during the Christmas period for the first time in the handset's 10-year history.
The shortfall was explained by financial officer Luca Maestri as being due to a stock overhang from the Christmas quarter, but that the second quarter would see an acceleration in sales.
The iPhone X is the most expensive iPhone ever and while this may have diminished its appeal to some, the margins are clearly benefiting Apple. Cook said that "we feel fantastic about the results" and that "customer satisfaction is literally off the charts on iPhone X". The new iPhones brought in the highest ever revenue of any iPhone lineup ever. During Q1 2017, Apple sold a total of 78.3 million iPhones, but this quarter, that number was less because the company sold 77.3 million iPhones. That sharp increase in average iPhone prices is likely due to the iPhone X, Apple's highest-end phone, with a starting price of US$999.
We might be falling out of love with iPhones, according to Apple's latest sales forecasts. That's up $1.5 billion on past year.
This is a very odd statement given what we know - or thought we knew - about iPhone X sales. Worldwide sales accounted for 65 percent of the quarter's revenue. Analysts now project revenues of $65.73 billion. Analysts surveyed in advance by Yahoo Finance expected earnings of $3.86 per share on $87.3 billion in revenue.
The "other product" segment, which includes the Apple Watch and Apple TV, increased 36 percent to US$5.5 billion. Apple also highlighted that it has reached 1.3 billion active Apple devices around the world in January.
Apple expects revenue to decrease in the current quarter to $60-62 billion.
Still, investors seem optimistic, especially as Apple announced plans to become net-cash neutral.