>> The iPhones don't seem to be flying off the shelves as fast as Wall Street predicted. Not only did Apple sell fewer phones in the holiday quarter than expected, 77 million versus an expectation of 80 million. But on Thursday Apple gave a revenue forecast for the current quarter that also hits below analyst expectations.
So is the iPhone pass its prime? Apple says, no way, and is putting a positive spin on the report. Reuters tech correspondent, Steven Nellis.>> So Apple pointed out this is actually a shorter core than normal, 13 weeks rather than the 14 weeks, and if you adjust for some things they actually are very pleased with the quarter.
I think the big thing that they were impressed with was the strength of those iPhone 10 and iPhone 8 sales that pulled the prices of phones up overall.>> That big 999 price tag on the iPhone 10 has in fact helped pull the average iPhone sales price to $796, $40 more than expected.
And that's good news since these phones still make up about 70% of Apple's revenue. So how did investors respond? Apple's stock was hit by a big sell off early in the week following reports that Apple suppliers saw big drop on iPhone sales. The final numbers weren't that bad, so while the results may not meet expectations it's still a relief for investors.