[ad_1]
Now that the iPhone 12 is out, the next question is how well it will work.
Patrick Holland / CNET
Apple’s iPhone sales plummeted 20% as consumers waited for the launch of its iPhone 12 amid the continued spread of the coronavirus pandemic, which has disrupted lives, disrupted business and slowed manufacturing around the world.
Apple’s three months of fiscal fourth quarter included the launch of its new $ 599 iPad Air and $ 279 Apple Watch SE, but not the newer iPhones, which went on sale Friday. The company said it recorded $ 26.4 billion in older iPhone sales, more than 20% less than at the same time a year ago. The launch of the iPhone 12 was later than usual. As a result, Apple’s fourth-quarter revenue, and primarily its iPhone sales, took a hit compared to last year’s figures, which included more than a week of sales for the then-new iPhone 11.
In total, Apple said it made a profit of $ 12.7 billion, 7% less than the same last year. That translates to 73 cents a share in earnings, compared to $ 64.7 billion in overall revenue, which in itself was slightly higher than the $ 64 billion reported last year. It was also enough to beat average analyst estimates, which were 70 cents a share in earnings over $ 63.7 billion in revenue, according to surveys released by Yahoo Finance.
Aside from the iPhone, Apple said it grew 25% compared to the same period a year ago, despite supply constraints amid the current coronavirus crisis.
“In April, I said we were in the most challenging environment Apple has ever operated as a company. That atmosphere of uncertainty, of resolution, of making difficult calls with limited information, has not only come to define Apple’s year, but each of our lives, “Apple CEO Tim Cook said in a statement. He is expected to discuss more details about the company’s results in a conference call with analysts later Thursday. “When we started dealing with COVID-19, I said there are worse things for a company whose business is innovation than having to periodically do almost everything in a completely new way.”
Apple said it is looking ahead to the holiday shopping season, which will include iPhone 12 sales as well as its new Apple One service, which offers some of the company’s services, such as music and new fitness subscriptions, in a discounted package starting at $ 15 per month. Apple said Apple One will be available from this Friday, and their fitness service will arrive before the end of the year.
Shares of Apple fell more than 4% to $ 110.34 after it closed regular trading up 3.7% to $ 115.32 a share. It has risen by about half so far this year.
Challenging year
Apple still faces a host of competitors, whose typically lower prices make them particularly attractive during economic uncertainty.
Angela Lang / CNET
Apple’s latest financial disclosures are just the latest sign of how the coronavirus pandemic has impacted the global economy. In the US, overall smartphone sales grew slightly in the same period after falling double digits earlier this year, according to Counterpoint Research. Apple derives most of its revenue from sales of its iPhone family of products.
In general, the United States is preparing for next week’s presidential elections, during which Americans will choose their leader to handle the coronavirus and the economic problems that followed its spread. US GDP, a measure of the US economy, varied wildly in recent months, making its worst quarterly decline on record earlier this year before rising more than 33% between July and September. a year ago, before COVID-19. Analysts warn that more coronavirus-related lockdowns may push the economy further back.
As the US has grappled with the surge in coronavirus cases across the country, the US government has been hitting the road. elected not to enact further stimulus efforts after passing a series of bills earlier this year. That led to a bitter mood on Wall Street, where the Dow Jones Industrial Average has fallen about 6% in just this week.
That raises questions about how enthusiastically people will be participating in holiday shopping this year and whether they will be willing to pay for one of Apple’s iPhone 12 models, which start at $ 799. iPhone 12 Pro Max Y iPhone 12 Mini They are scheduled to launch early next month.
There is also uncertainty about whether Apple itself can produce enough supplies to meet any potential demand. Although Apple is considered one of the best supply chain companies in the world, it warned earlier this year that iPhone sales would slow down due to manufacturing problems in China. The company also pointed to “supply restrictions” during its call with analysts on Thursday.
Still huge
While iPhone sales figures were confused by the delay in launching the iPhone 12, Apple was optimistic about other parts of its business. Mac sales grew almost 30% to $ 9 billion and iPad sales grew almost 46% to $ 6.8 billion. The company’s “wearables, home and accessories” business, which includes Apple Watch, AirPods and HomePod, grew 20% to nearly $ 7.9 billion. Its services business, including Apple Music and Apple TV Plus, grew more than 16%, the slowest growth among the company’s non-iPhone divisions.
Americans remain Apple’s largest market, rising more than 4% to nearly $ 30.7 billion. Its weakest market was China, which posted a 29% drop in sales, which Apple attributed to the slowdown of the iPhone. “Given the initial data points that we see on the iPhone 12 and iPhone 12 Pro,” Cook said, “I would tell you that we are confident that we will grow this quarter in China.”
“We are very optimistic,” he added.
See this:
IPhone 5G may not make 5G an overnight sensation
20:50
Bet on 5G
Apple made a big fuss over its 5G compatibility when it announced the iPhone 12.
Apple
Despite economic uncertainty around the world, Apple watchers say the iPhone 12 could represent one of the company’s most successful products in years.
Analysts routinely argue about Apple’s introduction of enhanced 5G wireless network features, which promise faster and more reliable download speeds, will kick off a shopping “supercycle” not seen since 2014. Back then, the then-new iPhone 6 helped Apple to record Christmas sales. increased to 74.5 million units, more than 45% from the 51 million it sold during the same period in 2013. Apple’s iPhone Christmas sales haven’t moved much since then.
Without giving any official details or “estimates,” Apple executives repeatedly told analysts that they expected the company to perform well during the holiday shopping season. That includes an increase in iPhone revenue and double-digit growth in its other products and services. “We are off to a great start,” Apple CFO Luca Maestri said during the conference call with analysts Thursday.
One of Apple’s biggest challenges, aside from the pandemic in general, has been building enough iPhones for people who want to buy them.
“It’s difficult to predict how long we will be limited in supply,” Cook said. “We are working very, very hard to remedy them as quickly as we can, but at this point. I can’t estimate when we’ll be out of that.”
