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IPhone 12 delayed pushes Apple’s quarterly earnings | Free Press

Cupertino (dpa) – The delay in the market launch of the iPhone 12 caused Apple’s earnings to fall in the last quarter. The company earned just under $ 12.7 billion, down 7.4 percent from the previous year.

Revenue for the fiscal fourth quarter, which ended in late September, increased one percent to $ 64.7 billion, as Apple announced. This was ensured by increased business with iPads and Mac computers and services, among other things.

Apple has introduced new generations of iPhones in September for years; traditionally, they still contribute to revenue for the quarter. This year, however, development was delayed in view of the Corona crisis and all four iPhone 12 models were only unveiled in October. IPhone sales now fell by a fifth to around $ 26.4 billion year-over-year. That was below analysts’ expectations.

The exciting question now will be whether the Christmas quarter is going as well as usual for the iPhone. CFO Luca Maestri said in a conference call with analysts that the group expects growth in the business. Among other things, the new iPhones are equipped for the first time for super-fast 5G data transmission. In light of the crown uncertainties, Apple did not provide a specific forecast for the quarter. Shares of Apple temporarily lost about four percent in after-hours trading.

The iPhone remains Apple’s most important product, but its share of the group’s business is now less than it has been for a long time. It contributed about 41 percent of total sales; in previous years, it was sometimes two-thirds. According to calculations by market research company IDC, iPhone sales fell in the last quarter by about 10 percent year-on-year to 41.6 million devices. Apple boss Tim Cook left open the question of whether the economic fallout from the Corona crisis had contributed to this, in addition to the lack of a new generation of iPhone. You think it is possible, but it is difficult to measure.

In recent years, Apple has been successful in making up for drops in the iPhone, including with services like subscriptions for streaming music or online storage, as well as revenue from its app platform. The group now has 585 million paying customers for its subscription offerings. The services business is now the company’s second-largest revenue stream, with revenue of $ 14.5 billion in the latest quarter, an increase of 16 percent.

In addition, the Apple Watch computer watch and AirPods headphones have become successful companion products. Cook emphasized that there are still bottlenecks in the delivery of some models of iPads, Macs and Watch.

Mac sales rose 29 percent in the last quarter to a good $ 9 billion. This could be due to the expensive Mac Pro for professional users, among other things. The iPad business grew 46 percent to $ 6.8 billion.

For the full fiscal year, Apple increased sales by 5.5 percent to $ 274.5 billion. Annual earnings increased four percent to $ 57.4 billion. Apple now has $ 192 billion in cash and $ 112 billion in debt. The company had borrowed money while foreign earnings were stored outside the country until the US tax reform.