Apple's iPhone unit sales take a surprising fall

From CNET: Apple on Tuesday reported a slight drop in quarterly iPhone unit sales to 50.8 million units, from 51.2 million units a year earlier. Analysts, on average, had expected it to sell 52.2 million in the fiscal second quarter that ended April 1.

Even though Apple sold fewer iPhones, it made more money because of demand for its pricier iPhone 7 Plus. The iPhone's average selling price was $655 in the quarter, up from $642 a year ago.

iPhone revenue rose 1 percent to $33.2 billion, benefiting from the iPhone 7 Plus. That model included a newer, better camera than its predecessors and its smaller sibling, the iPhone 7. Apple CEO Tim Cook called iPhone 7 Plus demand "robust" and admitted that Apple didn't correctly predict just how many people would opt for the bigger phone over the iPhone 7.

"It took us a little while to adjust all the way back through the supply chain and to bring iPhone 7 Plus [availability] into balance, which occurred ... early this past quarter," Cook said.

This quarter a year ago marked the first time iPhone sales fell -- ever -- but Apple's iPhone 7, released in September, helped it rebound. The company didn't change the design of the device much from the past two generations of iPhones, but the dual lenses in the bigger, pricier iPhone 7 Plus attracted millions of buyers.

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