Apple (NASDAQ:AAPL) zoomed to a new record on Tuesday as investors started to warm up to the revenue potential of the high-priced iPhone X.
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The company is scheduled to release its latest quarterly results on Thursday, after the bell, and ahead of the earnings there have been concerns that weak phone sales could dent the company’s outlook. This comes following negative reports regarding iPhone 8 sales and concerns that the $1,000 price tag would dent iPhone X demand.
Apple has not released official phone sales data, but it seems that people like the iPhone X, which the company hopes transfers into sales.
Pre-sale for the phone started on Oct. 27, and full availability is scheduled for Nov. 3. Tom’s Guide Editor-in-Chief Mark Spoonauer, one of the lucky few to get their hands on an iPhone X before its official launch, told FOX Business that when it comes to the latest iPhone, “it’s all about the design,” and that is what he thinks will “draw people in.”
After having the phone for 24 hours, Spoonauer added that the key features of the iPhone X include the big screen and the great cameras. He noted that there is no home button and that you unlock the phone with facial recognition, noting that the facial recognition has worked for him “every time,” even in the dark, and that in general, he finds it is better than touch identification.
It is important that iPhone X is well received. There are concerns that the $1,000 price tag would scare some buyers off, while demand for the iPhone 8 appears to be anemic. Reuters reported in mid-October, citing information from Verizon Communications (NYSE:VZ) and Rogers Communications (NYSE:RCI), that iPhone 8 sales had been disappointing.
While Spoonaeur complimented the iPhone X, he noted that the new phone makes Apple’s ecosystem “more sticky,” and that Android and other iPhone users will see some of the technology and will want it.
According to Thomson Reuters, analysts on average, expect Apple will earn $1.87 a share on revenue of $50.79 billion.