Apple drops 4%, iPhone sales slump
- 30th October 2020
- Posted by: Hakeem
- Category: Business plans
Apple the world’s biggest tech company reported its Q4 earnings, showing its iPhone sales slumped more than 20% year-over-year – coupled with no guidance on future earnings led the stock to drop momentarily after results were released.
Also weighing down on Apple shares is the bias that the lack of fiscal Q1 2021 guidance from the world’s most valuable company, means that stock traders and global investors don’t get a hint at how Apple is performing, as regards sales of its iPhone 12 – which went on sale this month.
What you should know
Here’s how Apple did versus analyst expectations via Refinitiv estimates:
- iPhone revenue: $26.44 billion vs. $27.93 billion estimated, down 20.7% YoY
- EPS: 73 cents vs 70 cents estimated
- Revenue: $64.7 billion vs $63.70 billion estimated, up 1% YoY
- Mac revenue: $9.0 billion vs. $7.93 billion estimated, up 28% YoY
- iPad revenue: $6.8 billion vs. $6.12 billion estimated, up 46% YoY
- Services revenue: $14.55 billion vs. $14.08 billion estimated, up 16.3% YoY
- Other Products revenue: $7.88 billion vs. $7.40 billion estimated, up 20.9% YoY
- Gross margin: 38.2% vs. 38.1% estimated
At the time of writing this report, Apple stock dropped over 4% in extended trading – trading at $110.45. The company has a valuation hovering at about $1.972 trillion, making it the most valuable technology company on this planet.
While Apple shares are falling amid the relatively impressive result, it recorded weak sales earning for Apple’s second most valuable market in China. Sales in greater China – which includes Taiwan, Hong Kong, plunged to $7.95 billion from $11.13 billion.
What they are saying
Apple’s CEO, Tim Cook gave deep insights on his company’s product performance, as the Mac. services and iPad posted impressive gains amid the ravaging COVID-19 virus onslaughts.
“Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services,” said Tim Cook, Apple’s CEO.
“Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive.
“From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver.”