Apple says iPhone sales were 20.7% lower in the fiscal fourth quarter
- Apple says iPhone sales were 20.7% lower in the fiscal fourth quarter.
- The tech giant reports £50.14 billion of revenue and 56.57 pence of EPS.
- Apple refrains from giving future guidance due to COVID-19 uncertainty.
Apple Inc. (NASDAQ: AAPL) published its financial results for the fiscal fourth quarter on Thursday that came in only slightly better than what analysts had anticipated. The company refrained from giving its guidance for the next quarter, citing the Coronavirus uncertainty. Apple became the world’s only company with a market value of $2 trillion in August.
Shares of the company tanked more than 5% in after-hours trading on Thursday. Apple is now trading at £84.62 per share. In comparison, it had a per-share price of £58.19 at the start of the year and had tanked to a year to date low of £43.46 per share in March due to the COVID-19 disruptions.
Apple’s Q4 financial results versus analysts’ estimates
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According to Refinitiv, experts had forecast the company to print £49.36 billion of revenue in the fourth quarter. Their estimate for earnings per share was capped at 54.24 pence. In its report on Thursday, Apple topped both estimates posting a higher £50.14 billion of revenue and 56.57 pence of per-share earnings in Q4.
The tech giant said that its iPhone revenue in the recent quarter saw a 20.7% annualised decline to £20.49 billion. Revenue from services registered at £11.27 billion that represents a 16.3% year over year growth. Analysts’ estimates for revenue from these two segments in Q4 stood at £21.64 billion and £10.91 billion, respectively.
Other prominent figures in Apple’s earnings report on Thursday include £6.11 billion of other products revenue that was 20.9% higher than the same quarter last year. Mac revenue jumped 28% in the fourth quarter to £6.97 billion, while iPad revenue was 46% higher in Q4 at £5.27 billion. Experts had forecast £5.73 billion, £6.14 billion, and £4.74 billion of revenue from these segments, respectively.
Apple reports a 28% sales decline in greater China
The American multinational also said on Thursday that its gross margin stood at 38.2% in the recent quarter that was only marginally higher than 38.1% expected. In greater China, Apple’s sales were 28% lower in Q4 versus the comparable quarter of last year. Earlier this week, the Cupertino-based company was reported to have acquired a Spanish artificial intelligence company, Vilynx.
Apple performed largely upbeat in the stock market last year with an annual gain of close to 100%. At the time of writing, it is valued at $2 trillion and has a price to earnings ratio of 35.06.