The coronavirus pandemic created a lot of problems for the companies, and Apple is no exception. It is worth noting that, Apple reported fourth-quarter earnings on Thursday, which slightly surpassed expectations. People should keep in mind that, Cupertino-based company did not offer investors any guidance for the quarter ending in December. Interestingly, iPhone sales fell more than 20% year-on-year.
Let’s have a look at the results to learn more about the situation as well as some interesting details. Interestingly, earnings per share surpassed expectations. Revenue reached $64.7 billion vs $63.70 billion estimated.
However, iPhone revenue failed to meet expectations. However, services revenue reached $14.55 billion. This is not the end of the story, as other products revenue also exceeded expectations. Hopefully, revenue from its Mac computers reached $9.0 billion.
It is worth noting that, the lack of fiscal first-quarter 2021 guidance from Apple is an issue for investors and analysts. It means they do not get a hint at how Apple is projecting the sales performance of the iPhone 12.
The company has not offered guidance for the past two quarters because of uncertainty regarding the coronavirus pandemic.
Apple and main findings
As stated above, the iPhone revenue failed to meet expectations. Importantly, iPhone revenue declined more than 20% from the same quarter in 2019. Nevertheless, many investors, as well as analysts, are monitoring the situation regarding the iPhone 12, as that factor is more important for them.
As a reminder, Apple’s iPhones went on sale this year in October and the company plans to unveil more models next month. It means that sales from the new devices are not counted in this quarter.
However, revenue from Macs and iPads both surpassed analyst expectations, most likely thanks to strong work-from-home trends that emerged during the pandemic. Interestingly, Apple drew attention to great results in those categories last quarter as well.
Importantly, Apple released the new Apple Watch Series 6 models that went on sale last month. Interestingly, Wearables, Home, and Accessories, also exceeded expectations. It is worth noting that, this category also includes sales from headphones such as AirPods and Beats.
Despite all challenges caused by the pandemic, the Cupertino-based company once more underlined its dominant position. Apple continues to sell various products and it has the potential to strengthen its positions in the market. Moreover, the company will release bundles of its subscription services called Apple One on Friday.