Apple down 7% on soft guidance

|About: Apple Inc. (AAPL)|By:, SA News Editor

Apple’s (NASDAQ:AAPLdrops 6.8% on Q4 results that beat EPS and revenue estimates with revenue up 20% Y/Y to $62.9B. The report comes after the iPhone XS and XS Max releases in late September and roughly the first week of those sales appear in the quarter.

Q1 guidance (holiday quarter) has revenue from $89B to $93B (consensus: $92.88B), gross margin from 38% to 38.5% (consensus: 38.6% ).

IPhone: Shipments, 46.9M (consensus: 47.5M); Revenue, $37.18B (consensus: $35.56B); ASP, $793 (consensus: $750.78)

IPad: Shipments, 9.7M (consensus: 10.53M); Revenue, $4.08B(consensus: $4.62B); ASP, $421.5 (consensus: $435.25).

Mac: Shipments, 5.3M (consensus: 4.87M); Revenue, $7.4B (consensus: $6.92B); Blended ASP, $1,398 (consensus: $1.43K).

Services revenue was up 27% Y/Y to $10B (consensus: $10.2B).

China: Greater China revenue grew 16% Y/Y and 19% Q/Q to $11.4B.

Gross margin was 38.2% (consensus: 38.3%) and operating expenses came in at $7.96B (consensus: $8.02B).

Earnings call is scheduled for 5 PM ET with a webcast available here.

Press release.

Suppliers that can move on the prints of Apple and Cirrus Logic: (NASDAQ:SWKS), (NASDAQ:AVGO), (NASDAQ:FNSR), (NASDAQ:QRVO), (NASDAQ:QCOM), (NASDAQ:LITE), (NYSEARCA:SMH).

Previously: Apple's Q4 numbers to beat (Nov. 1)

Previously: Apple beats by $0.13, beats on revenue (Nov. 1)

Previously: Apple declares $0.73 dividend (Nov. 1)

Update: On the earnings call, Apple says it will no longer provide unit sales figures for the iPhone, iPad, and Mac. Investors don't like that idea and shares have now dropped 6.4%.

Regarding China, Apple says the iPhone had strong double-digit growth in the region and that China isn't one of the emerging markets feeling pressure (those would be Turkey, Russia, India, and Brazil.)

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