Leading up to Apple’s earnings announcement today, a slew of reports emerged suggesting that the iPhone X has not been selling as well as Apple had hoped. Tim Cook, however, aimed to negate those reports during the company’s Q2 earnings call today, repeatedly touting the success of the iPhone X…
First and foremost, Cook repeatedly touted that the iPhone X was the best-selling iPhone each week in the March quarter, just like it was following its launch in the December quarter. This marks the first time, according to Cook, that the top-of-the-line iPhone model has also been the top-selling iPhone:
Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. Since we split the line with the iPhone 6 and 6 Plus in 2014, this is the first cycle in which the top-of-the-line iPhone model has also been the most popular.
As for the consumer response to the $1,000 iPhone X, Cook touted that the device has 99% customer satisfaction, making it a “beloved product.”
Analysts also asked on the call about the price elasticity of demand for the high-end iPhone X, with analysts questioning whether users are willing to pay for the device. Cook explained that Apple prices its products “for the value that we’re delivering,” noting that the iPhone X is “the most innovative product on the market.”
Ultimately, Cook likened the iPhone X to when a team wins the Super Bowl, but maybe could have won by a few more points:
It’s one of those things like when a team wins the Super Bowl, and maybe you want them to win by a few more points. But it’s a Super Bowl winner and that’s how we feel about it. I could not be any prouder of the product.
Apple’s earnings release today comes after a rocky string of reports concerning the success of the iPhone X. Analysts have speculated that demand for the device has slowed, with suppliers attributing their slower numbers to a lack of demand for high-end smartphones.
Cook’s comments on iPhone X sales, along with stronger-than-expected guidance for next quarter, seem to be helping as AAPL is up 5.75 percent in after-hours trading.