Why Apple No longer Reports Number of Device Sales?

by team December 02, 2019

Why Apple No longer Reports Number of Device Sales?

 

Apple has just announced its financial statements recently. Apple said it would no longer report the number of devices sold, including the iPhone, iPad or Mac.

That was said by Apple Chief Financial Officer (CFO) Luca Maestri in a conference call with investors when announcing financial statements.

According to him, Apple will no longer announce the number of devices it sells. Apple will report the three main product lines in one income statement.

Not announcing the number of device units sold has the potential to reduce indicators that can be used by analysts and the public to estimate Apple’s financial condition. But Maestri argues that the number of devices sold is no longer an appropriate indicator to look at financial conditions because Apple devices are now sold at more variable prices.

“Our product range for all major product categories becomes wider over time and therefore the sales unit is less relevant to you now than ever before because we have increasingly diverse selling prices,” explained Maestri as quoted by Tech Crunch.

Maestri also argued that Apple’s rivals, like Google and Samsung, also did not report the number of cellphones and tablets they were selling.

Unit sales as an indicator only cover one side of the financial condition. Even though the 46.89 million iPhone units that Apple shipped this quarter indicated a flat development, Apple’s revenue from the iPhone jumped 29%.

This is because the average selling price (ASP) of the iPhone continues to increase. Last year, the iPhone ASP was USD 618, but this quarter increased to USD 793. The increase in ASP iPhone was also due to the high price tag for the iPhone XS and XS Max, the cheapest versions reaching USD 999 (USD 15 million) and USD 1,099 (USD 16), 5 million).

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