Apple Attracts New iPhone Fans as Existing Owners Await Upgrade

  • Company sold 3.5 million more iPhones in holiday quarter
  • Samsung handset recall likely drove new customers to Apple

Is It All About Apple's iPhone 7?

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Apple Inc. attracted a swathe of new iPhone customers over the holiday period, auguring well for a more significant upgrade to its flagship product this year -- and the services revenue that these devices are increasingly generating. The shares climbed to the highest price in more than 17 months.

Existing iPhone users upgraded to the latest iPhone 7 models at about the same rate as the iPhone 6S a year earlier, Chief Executive Officer Tim Cook said in a conference call with analysts. Yet Apple still managed to sell 3.5 million more phones in the three months ended Dec. 31, indicating growth was driven by new customers.