Multiple reports and sources have pointed to the iPhone 11, iPhone 11 Pro doing very well. This has now been confirmed by Apple’s CEO Tim Cook himself. In an interview with Reuters, Cook said that iPhone 11 and iPhone 11 Pro series sales are off to a “very, very good start.”
Apple stopped reporting the number of iPhone units it ships every quarter since last year. This has made it a bit difficult to determine how new iPhones do at launch. Nonetheless, market feedback suggests that the iPhone 11 series is doing better than 2018’s iPhone XS series and Cook’s statement — despite lacking any meaningful number and being vague — indicates just that.
The slightly lower price point of the iPhone 11 has definitely helped in spurring sales, particularly in China where sales picked up towards the end of the quarter after the launch of the new iPhones.
“The starting price of $699 is a factor in bringing more people into the market and giving people just another reason to upgrade,” Cook told Reuters. “In China specifically … we picked locally relevant price points that were more similar to the price points that had great success with earlier.”
The company’s Services business also saw growth in the double-digit figure in China and its wearable business grew at a faster rate in China than the average worldwide figure. As iPhone sales decline, Apple has been transitioning into a Services and Wearables company.
Apple’s Wearable business once again set a new revenue record and its Services business also posted healthy growth. Based on the strong demand for the iPhone 11 series and the growth of its Services and Wearable business, Apple expects revenue of $88.5 billion to $89.5 billion in Q1 2020 (fiscal year).
In the interview, Tim Cook also hoped that the U.S.-China trade war will finally be resolved in this quarter. Apple has had to make a few changes in its supply-chain to avoid iPhones being imported to the US from China from being subjected to tariffs. However, certain other products like chargers and Mac Pro components have been subjected to import tariffs.