Apple introduced its fourth-quarter earnings as we speak after the bell, and it was one thing of an odd quarter as a result of, not like some earlier years (together with final yr), this quarter’s numbers didn’t embrace an iPhone launch. The iPhone 12’s numerous fashions ship in October and November as an alternative of September this yr.
CEO Tim Cook dinner proudly introduced double-digit YOY progress in all product classes moreover iPhone on the decision, however the iPhone is vital: Apple’s whole income was up only one p.c year-over-year, with iPhone income down virtually 21 p.c.
Whereas the iPhone did not assist push up the underside line, Apple did launch different merchandise through the interval, together with the redesigned iPad Air and two Apple Watches: the Apple Watch Sequence 6 and the Apple Watch SE. iPad income was up a considerable 46 p.c YOY (it totaled $6.8 billion), and Mac income was additionally robust at $9 billion, or 28 p.c greater than the identical quarter final yr.
Apple’s rising emphasis on companies is a well-trodden story by this level, however it continued in Cook dinner’s remarks to traders on the earnings name. Companies have been up 16.3 p.c year-over-year, totaling $14.55 billion—that is extra income than another product class moreover the iPhone ($26.44 billion on this down quarter).
Cook dinner particularly known as out Apple TV+ as having a great quarter. The streaming service appeared to outsiders to have a gradual launch this time final yr—particularly in distinction to the massively profitable Disney+, which started service at virtually the identical time. However Cook dinner spoke of Apple TV+ in a optimistic tone and named the collection Ted Lasso as a notable success. The sports activities comedy starring Jason Sudeikis has drawn reward for its optimistic, uplifting vibe, and it is perhaps Apple TV+’s greatest hit but—although Apple has not launched as many numbers about Apple TV+ viewership as many would love.
Apple additionally declined but once more to present steering for the following quarter—a apply it and another corporations have caught to all through the pandemic, given the worldwide uncertainties concerned. Some analysts had thought Apple would possibly return to giving steering this quarter, however with COVID circumstances on a pointy rise in some areas (together with the US), it appears that evidently wasn’t within the playing cards simply but.
That signifies that analysts, traders, and different observers don’t know how nicely Apple expects the iPhone 12 and 12 Professional to promote. Presently, two out of 4 new iPhone fashions this season are already transport, so we’ll see these numbers within the subsequent quarter—which is normally Apple’s finest, exactly due to these new iPhone gross sales.
Apple shares dropped about 5 p.c in worth in after-hours buying and selling as some traders have been disillusioned that the surge in iPad and Mac gross sales wasn’t sufficient to make up for the iPhone’s short-term decline. That stated, Apple’s reported earnings hewed carefully to what analysts anticipated from this quarter.