• by Gavin O'Malley  @mp_gavin, February 1, 2018

Despite missing iPhone sales estimates, Apple exceeded revenue expectations during its fiscal first quarter. For the quarter ended December 30, 2017, Apple racked up $88.3 billion -- up 13%, year-over-year, and a quarterly record for the company.

“We’re thrilled to report the biggest quarter in Apple’s history,” CEO Tim Cook stated.

Cook also noted that rumors of sluggish iPhone X sales have been overblown and insisted that the pricey device “surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.”

In January, Apple’s active installed base of devices also reached 1.3 billion -- up 30% over the past 18 months.

During the first quarter, Apple sold 77.3 million iPhones during the period, which was down by nearly 1 million, year-over-year. Yet, revenue from phone sales actually increased by 13%, year-over-year, thanks largely to the higher cost of the iPhone X.

Also of note, Apple’s services division saw revenue of about $8.5 billion, which was up 18%, year-over-year.

During the quarter, international sales accounted for 65% of total revenue. 

Looking ahead, Apple said it expects revenue between $60 billion and $62 billion during its fiscal second quarter, which is lower than some analysts were expecting.

Earlier this week, sources told The Wall Street Journal that Apple was slowing production of the iPhone X in light of weaker-than-expected demand.

On February 9, Apple is finally expected to throw its hat into the smart-speaker ring. At a retail price of $349, Apple is hoping to package its so-called HomePod with a $9.99 per month Apple Music subscription.

This past quarter, Apple committed to contributing more than $350 billion to the U.S. economy over the next five years. That figure includes the company’s existing impact on the U.S. economy -- which includes employing about 84,000 people from coast to coast. It does not include tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.

For Apple, the investment is being driven by a “deep sense of responsibility to give back to our country and the people who help make our success possible,” Cook stated at the time of the announcement.