Hundreds line up in Sydney for Apple iPhone X launch

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Huge crowds gather outside Apple store in Orchard Road ahead of iPhone X launch

For the company's fiscal fourth quarter, which ended September 30, Apple reported earnings of $2.07 a share on revenue of $52.6 billion. Still, there has been news that Apple force is facing significant product difficulties with the iPhone X.

Beyond the iPhone, Apple said it sold 10.3 million iPad tablets, up 11% from the year ago quarter, and 5.3 million Macintosh computers, up 10%.

The Cupertino, California-based company said it had net income of $2.07 per share.

The iPhone 8 and iPhone 8 Plus went on sale in October, boasting improvements to the camera and the addition of wireless charging.

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Around 400 people lined up outside Apple's flagship Sydney branch to pay A$1,579 ($1,218) for the 10th-anniversary model, and Chief Executive Tim Cook has billed the glass and stainless steel device "the biggest leap forward since the original iPhone".

Making the iPhone X is proving to be a challenge because it boasts a colour-popping OLED screen, which isn't as readily available as standard LCD displays in other iPhone models. He cited early reports of lines forming outside its stores ahead of the launch.

Apple's market capitalization of about $868 billion makes it the world's most valuable publicly traded company.

Wang Hao, a 24-year-old engineer in the northeastern port city of Dalian, said he ordered the new phone despite the high price tag. Sales of iPads continued to bounce back after a slump, with revenue up 14%. "I think you would find you could buy an iPhone X for $33 a month", he said.

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The results follow strong third quarters from technology companies including Alphabet Inc., Microsoft Corp. and Amazon.

Apple's reinvigorated effort to expand services, like the App Store and Apple Music, has also locked customers into its products more tightly.

The release of iPhone 8 and 8 Plus have been somewhat overshadowed by the upcoming IPhone X launch, with reports suggesting demand for the 8 could be weaker than expected.

Apple gave a gross margin forecast of 38 percent to 38.5 percent, higher than many analysts expected because new products often have higher costs.

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But even the keenest iPhone X buyers might not be able to get their hands on Apple's most expensive smartphone for months to come, as Telstra revealed orders for this year's iPhones broke previous records, new Vodafone orders were delayed until after Christmas, and analysts predicted stock shortages could continue until May next year.

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