Apple expects to sell a lot of new iPhones over the holidays, and customers were clearly waiting for a new generation of devices before opening their wallets. The company reported its fourth quarter earnings today, and iPhone sales were up just two percent. But the company is projecting a massive quarter to start 2018, forecasting upwards of $84 billion in sales.
The company brought in $52.6 billion in revenue for the quarter, with net income of $10.7 billion. Sales of Macs and iPads were both up by more than 10 percent from the same period last year, while iPhone sales were up only slightly. Luckily for Apple, revenue from its services and other products division both grew at more than 30 percent year over year, helping boost the company to a strong overall performance. The company’s sales expanded in every territory save for Japan.
Apple has made clear for some time that it expects its services division to be the key to long term growth. With over 1 billion iOS user around the globe, Apple has a massive customer base to upsell products like streaming music, cloud storage, and of course, insurance for your fancy new iPhone.
The company expects its next quarter to be much better than last year. It’s projecting revenue between $84 and $87 billion for the first quarter of 2018, compared with $78.4 billion for the same period this year. That bullish guidance helped to send the stock price higher in after hours trading, inching Apple closer to becoming a trillion dollar company.