Friday , November 27 2020

Apple is disappointing with iPhone sales despite better-than-expected results



par stephen nellis

SAN FRANCISCO (Reuters) – Apple disappointed investors Thursday by announcing a smarter-than-expected fall in iPhone sales, though its quarterly revenue and profits exceed Wall Street expectations.

The title lost 4% in post-closing transactions on the New York Stock Exchange.

The market was expecting a decline in sales of Apple’s flagship product, which caused its most loyal followers to wait before introducing new versions to them. The fall, however, was sharper than expected, from 20.7% to $ 26.4 billion ($ 22.6 billion) in the quarter ending September 26, the fourth of its financial year behind schedule.

Nevertheless, Apple’s group exceeded analysts’ expectations with its sales throughout this financial year, specifically by launching several products and services that attracted customers, confined to their homes for part of the year because of the A new coronavirus.

This was reflected in the quarterly results with revenues of $ 64.7 billion and earnings of 73 cents per share, when analysts expected 63.7 billion and 70 cents, respectively, according to IBES data from Refinitiv.

Apple only introduced on October 13 its new iPhone 12, compatible with 5G, the new mobile generation. This means that the California group could not take advantage of it during its fourth quarter, unlike the practice when the new models were unveiled in September.

In an interview with Reuters, CEO Tim Cook said he was “optimistic” about the iPhone 12 cycle given the figures for the first five days of marketing.

“5G is an opportunity that only starts in once every decade. And we couldn’t be more excited to hit the market than at the exact moment we did it, ”he said. . “In the United States at least, the activists are very aggressive.”

In recent years, Apple has offset the volatility of its iPhone sales by steadily growing its services, including video and online music. The quarterly turnover of this activity climbed 16.3% to 14.5 billion dollars, against analysts’ estimate of 14 billion.

Tim Cook told Reuters that Apple One, a proposal that bundles the group’s paid services, would launch on Friday.

He said Apple has 585 million paying subscribers to its platforms, up from 550 million the previous quarter, which brings it closer to its target of 600 million set for the end of the 2020 calendar year.

All product categories and services other than iPhone posted two-digit growth in the quarter as work, education and home entertainment flourished in closing.

“The Covid, we will classify it as a kind of anonymity,” said Tim Cook, however, while many European countries, such as France, are completely or partially redefining their populations in the face of the revival of the epidemic due to the coronavirus new.

(Stephen Nellis; Bertrand Boucey’s French version)

Source link