Apple Inc. reported earnings for the fourth quarter late on Wednesday. Despite the declining iPhone sales, the overall performance was noted as largely positive. Apple’s rapidly growing business of wearable devices along with the services sector enabled the tech-giant beat analysts forecasts in the fourth quarter.
iPhone’s sales were reported to have dropped sharply by 9% (year-over-year). However, Officials at Apple expressed optimism for an upcoming big holiday quarter, that helped the stock climb up by more than 1% in after-hours trading on Wednesday.
Analysts had forecasted revenue of $62.99 billion for Apple in the fourth quarter. The estimate further expected earnings per share (EPS) to be capped at $2.84. Beating both the estimates, the Q4 earnings report printed $64 billion in revenue (up by 18%) and $3.03 of earnings per share. Tim Cook, the current Chief Executive of Apple, was particularly excited about a significant increase in the services revenue, that beat the expected $12.15 billion and was reported at $12.51 billion.
iPhone Revenue Was Down In The Fourth Quarter
While sales for iPhone have taken a hit in the fourth quarter, the revenue ($33.36 billion) remained upwards of the estimate ($32.42 billion). In the upcoming holiday quarter, Apple is expecting a revenue of $85.5-$89.5 billion that is in line with the analysts’ forecast of $86.92 billion. It was further added that a remarkable year-over-year growth can be expected in the 2019’s holiday quarter since Apple was weighed down by the dawdling iPhone sales in China (15% decline in revenue) in the holiday quarter of 2018.
Apple posted a record high of $88.3 billion in revenue in the holiday quarter of 2017. Cook is hopeful for the revenue to beat the all-time high in the next quarter ending December 2019. He also commented that the U.S – China trade optimism has helped Apple improve its revenue and EPS for the fourth quarter.
Airpods Earbuds Printed Maximum Growth In Revenue
Other noticeable figures in the earnings report include 40% revenue growth (year-over-year) for subscription apps, and 50% revenue growth (year-over-year) in wearables. In an interview with CNBC, Cook applauded the Airpods earbuds as the Apple’s fastest-growing business segment, posting $6.52 billion in revenue that marked a 54% increase as compared to the figure for last year.
While sales were slightly short of the figure for last year in Greater China, Japan, and Europe, a significant increase in American sales rescued the overall figure for sales that beat the analysts’ forecast.
After-hours trading on Wednesday reported Apple’s stock to have approached the $250 level that marks a record high for Apple Inc. Later, it was seen settling around $248 per share.