The late launch of 5G iPhones has led to a delay Client Apple to buy new devices, prompting the company on Thursday to announce the largest quarterly drop in iPhone sales in two years.
Apple has fallen more than 5 percent at some point in after-hours trading, resulting in a $ 100 billion loss in its market value.
And Apple has been accustomed since 2013 to announce new iPhones during the month of September, but the delay caused by the emerging coronavirus (Covid-19) COVID-19 epidemic has delayed the announcement for a month, while still shipping some devices.
Even as sales of Macs and AirPods boosted total revenue and profits more than analysts had expected, iPhone sales fell 20.7 percent to $ 26.4 billion.
Investors expected sales from Apple to decline, but the decline was worse than expected, especially in China, where more consumers have access to 5G networks compared to the United States or Europe.
And Apple has mostly exceeded sales forecasts for the current year, with the release of a slew of new products and services that its customers have embraced while largely staying at home during the pandemic.
Apple said revenue and earnings for the fourth quarter ended September 26 were $ 64.7 billion and 73 cents a share, compared to analyst estimates of $ 63.7 billion and 70 cents a share, according to IBES data from Refinitiv.
In an interview with ReutersApple CEO Tim Cook said he was “optimistic” about the iPhone 12 cycle based on the first five days of shipping data. He added, “The 5G networks are an opportunity that occurs once in every decade.”
And the timing of the iPhone 12 release reduced sales in Greater China by 28.5 percent to $ 7.95 billion. Cook said he expected the new 5G devices to help iPhone sales in China.
“What we are seeing in the first five days gives us great confidence that China will return to growth in the first quarter of the fiscal year,” Cook told Reuters.
Apple did not provide forecasts on revenue growth, but CFO (Luca Maestre) said: Revenue from services and products other than iPhone will grow by double in the first quarter of the fiscal year, in line with analysts’ expectations. He said: iPhone revenues will also grow, which means the price will be in the single digits. Analysts expect iPhone revenue to rise 6.45 percent to $ 59.56 billion in the first quarter, according to Refinitiv data.
Cook told Reuters: Apple has 585 million subscribers paid through its platforms, which increases the number from 550 million subscribers in the previous quarter, and is closer to the target set by the company for the end of the 2020 calendar, of 600 million subscribers.
Apple said its accessories segment revenue rose 20.8 percent to $ 7.9 billion, compared to analysts’ estimates, an increase of 13.5 percent to $ 7.4 billion, according to Refinitiv data. Mac and iPad sales rose to $ 9 billion and $ 6.8 billion, compared to estimates of $ 7.92 billion and $ 6.12 billion, according to Refinitiv data.