Apple says that iPhone sales were 20.7% lower in the fourth quarter of the fiscal year.
The technology giant reported sales of £50.14 billion and 56.57 pence EPS.
Apple refrains from making a forecast for the future due to the uncertainty of COVID-19.
Apple Inc. (NASDAQ: AAPL) on Thursday released its financial results for the fourth quarter of the fiscal year, which were only slightly better than analysts had expected. The company refrained from issuing a forecast for the next quarter due to the uncertainty of the coronavirus. In August Apple was the only company in the world with a market value of $2 trillion.
In Thursday’s after-hours trading, the company’s shares plummeted by more than 5%. Apple is now trading at 84.62 pounds per share. By comparison, the company started the year at £58.19 per share and had fallen to a year low of £43.46 per share in March due to the COVID 19 disruptions.
Apple’s financial results for the 4th quarter compared to analysts’ estimates
According to Refinitiv, experts had predicted the company’s fourth-quarter sales of 49.36 billion pounds sterling. Their estimate for earnings per share was capped at 54.24 pence. In its Thursday report, Apple exceeded both estimates with higher revenues of 50.14 billion pounds sterling and earnings per share of 56.57 pence in the fourth quarter.
The technology giant said its iPhone sales in the last quarter fell by 20.7% to £20.49 billion on an annualised basis. Services revenues were £11.27 billion, representing 16.3% growth year on year. Analysts’ estimates for revenues from these two segments in the fourth quarter were £21.64 billion and £10.91 billion respectively.
Other prominent figures in Apple’s earnings report on Thursday include £6.11 billion from sales of other products, up 20.9% on the same quarter last year. Mac sales in the fourth quarter rose 28% to £6.97 billion, while iPad sales in the fourth quarter were 46% higher at £5.27 billion. Experts had forecast revenues of £5.73 billion, £6.14 billion and £4.74 billion respectively from these segments.
Apple reports a 28% decline in revenue in Greater China
The American multinational also said on Thursday that its gross margin for the last quarter was 38.2%, only slightly above the expected 38.1%. In Greater China, Apple’s sales in the fourth quarter were 28% lower than in the same quarter last year. Earlier this week it was reported that the Cupertino-based company has acquired a Spanish artificial intelligence company, Vilynx.
Apple’s performance on the stock market last year was largely positive, with an annual profit of almost 100%. At the time of writing this article, the company is valued at $2 trillion and has a price-earnings ratio of 35.06.