Apple announces its fourth fiscal quarter 2020 results

Apple announced its profits for the fourth fiscal quarter of 2020, which corresponds to the third quarter of the actual year after the closure last Thursday, and these results exceeded all expectations despite global health conditions, as the company's service offerings and Mac devices reached record numbers. Despite the unexpected increase in profits in this quarter, the shares were trading down by more than 3% immediately after the report was released, as investors focused on the decline in sales of the iPhone because it was worse than expected during the third quarter, this is not a sharp decline in sales in China. In this article, we take a more detailed look at the results.

The main findings of Apple's report

The results came just weeks after the unveiling of the iPhone 12 series equipped with 5G technology, which puts additional focus on the company's expectations for the current quarter and next year. IPhone 12 and 12 Pro were not included in this quarter's results, and postponed it to the first quarter of 2021.

For this quarter, Apple recorded revenues of $ 64.7 billion and a net profit of $ 12.7 billion per share, and 73 cents per share, compared to revenues of $ 64 billion and a net profit of $ 13.7 billion, or 76 cents per share, in the parallel fiscal quarter from last year.

◉ Apple set a new record for revenue this quarter from service offerings such as Apple News, Apple TV + and iCloud. Services revenues grew to $ 14.55 billion, or 38.2%, compared to $ 13.16 billion in the third quarter and $ 12.5 billion, or 38.0%, compared to the same quarter last year.

◉ Mac sales have also risen to a record high as demand increases due to the epidemic. These sales generated $ 9.03 billion.

◉ Wearables revenue grew compared to last year and the last quarter, after the company launched new versions of the Apple Watch in September, and its total sales in addition to home accessories reached $ 7.88 billion, exceeding expectations of $ 7.35 billion.

◉ Revenue from the iPhone came less during the last quarter of this year than it was in the same period in 2019, as customers waited for the new generation of iPhone 12 devices, as sales decreased by approximately 21% to $ 26.44 billion, which was It is expected to be valued at $ 27.06 billion.

◉ The company reported a 29% decline in China sales to $ 7.95 billion, which represented only 12% of Apple's total sales. In the same period last year, 2019, sales accounted for more than 17% of revenue nationwide, or $ 11.13 billion, and Cook stated that he was "confident that the next quarter will change."

For the full fiscal year, Apple generated $ 274.5 billion in sales with a net income of $ 57.4 billion, compared to $ 260.2 billion in sales and $ 55.3 billion in net income for the 2019 fiscal year.

◉ Apple also announced a quarterly dividend payment of $ 0.205 per share, to be paid on November 12 to registered shareholders from November 9.

Tim Cook, CEO of Apple, said:

Apple capped a fiscal year marked by innovation in the face of adversity with a quarterly record in September, led by records for Macs and services. “In spite of the continuing effects of COVID-19, Apple is in the midst of introducing our distinctive and most productive products ever,” he means the iPhone, and the response to all our new products, especially the iPhone 12 group with 5G technology, was early and very positive. From distance learning to working from home, Apple products have been a window to the world for users in light of the global Corona epidemic, and our teams have met the needs of this time with creativity, passion and various ideas that only Apple can provide.

How about the next quarter?

As was the case in the past several fiscal quarters, Apple has been issuing some guidance about its conditions, product status, and future prospects, but it did not issue any of those guidance for the current quarter ending in December, as there remains a great deal of uncertainty about the impact of the global health situation due to Corona, and this may be one of the reasons for the decline in the value of the stock because the company itself says we do not know what may happen and we do not have expectations.

According to Cook, the initial data points for iPhone 12 sales are "really good." During the earnings call, Cook went on to say that the iPhone 12‌ lineup was Apple's strongest lineup, relying on 5G technology, and said, "We've got off to a great start."

Sources:

finance. yahoo | macrumors | apple