Apple income and profit
Apple reported an increase in quarterly sales of its devices and services. Although, iPhone sales fell very strongly, as consumers expected the new iPhone to be the fifth generation of communication.
Shares (AAPL), which had increased 57% since the beginning of the year, fell after the close of trading on Thursday as investors were stunned by the decline in iPhone sales and the lack of anticipation for the next quarter.
Moreover, the key figures for the quarter surpassed average Wall Street analysts expectations and the company proved successful in diversifying its revenues. A decline in iPhone sales was largely expected as the financial quarter ended on the eve of the long-awaited iPhone 5G. The release was postponed by several weeks due to the pandemic and delays in producing the company's own Apple A14 Bionic chips.
At the same time, Apple showed a 46 per cent increase in iPad sales over the previous year and a 28 per cent increase in Mac sales following the trend towards telecommuting.
Strong growth of 20.9 per cent was seen in the Wearing Devices, Home and Accessories segment, which includes products such as Watch, AirPods and Home Pod speakers.
Apple's services also showed revenue growth of 16.3%.
Apple reported 585 million subscribers on its platforms, 35,000 more than in the previous quarter. By the end of the year Apple could reach over 600 million subscribers.
Results from Apple's 4th fiscal quarter ended 30 September
Earnings per share decreased by 4% to $0.73, above the $0.70 forecast.
Total earnings rose 1% to $64.7 billion, outperforming the $63.70 billion estimate.
Revenue from iPhone sales fell 20.7% to $26.44 billion.
Sales of services increased 16.3% to $14.55 billion.
Sales of the Wearing Devices, Home and Accessories segment increased 20.9% to $7.88 billion.
Mac sales increased by 28% to $9.0 billion.
iPad sales increased 46% to $6.8 billion.
iPhone sales in China fell 28.5% to $7.95 billion during the quarter as users expected iPhone 12 to come out of 5G.
Tim Cook said: "Without saying too much, I can say that there are still some interesting things to do this year".
The CEO also hinted that Apple is preparing another release of new products in 2020 without giving details.