This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

Apple has a very clever iPhone-selling strategy in place and it is just not the iPhone X, iPhone 8 Plus and iPhone 8 sales that have propelled the tech giant to report its best quarter in history, but previous-generation devices that have become more affordable than before have also contributed to this.

Apple Reports a Mammoth $88.3 Billion Revenue for Its Q1 2018 Financial Results While Selling Fewer iPhones - High Average iPhone Price Is Reason for This Revenue Increase

During the Q1 2018 earnings call, Apple Chief Executive Tim Cook was very pleased to announce the sales performance of the iPhone X, and it was also detailed that the company has managed to reach an active user base of an unprecedented 1.3 billion devicesfor the month of January. EPS figure was $3.89 while profits were calculated at $20.1 billion.

“We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November. We've also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That's an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers.”

It has been uncovered that the average selling price of the iPhone was $796.42, making it the highest level ever for a mobile phone. This is thanks to the sales momentum of the iPhone X, which is priced at $999 for the base storage version. Overall sales of iPhones were down 1.2 percent when comparing these results with last year’s quarter, reaching a total of 77.3 million units and coming short of investor’s expectations.

Investors had forecasted that Apple would hit 79 million iPhone units during this quarter, and the company sold 78.3 million units a year ago during the same quarter. However, Apple only generated $78.4 billion in revenue during the same period last year and following the iPhone 6s release, the company garnered $75.9 billion in revenue. This reveals that there have been small increments of revenue growth, despite the fact that fewer devices are being sold.

The rest of the product sales have been listed below.

iPad sales: Up 0.7 percent compared to last year with 13.2 million units soldMac sales: Down 4.8 percent compared to last year with 5.1 million units soldSoftware and services sales: $8.5 billion in revenueOther (Apple Watch) sales: $5.5 billion in revenue

For the next quarter, Apple has forecast revenue between $60 billion and $62 billion, with gross margins between 38 percent and 38.5 percent. The company expects operating expenses between $7.6 billion and $7.7 billion, other income of $300 million, and a tax rate of about 15 percent.

Has Apple broken the negativity of its high-priced iPhone X with its latest quarterly report? Tell us down in the comments.