Weak iPhone sales drive Apple shares lower after FQ4 beats; Services, Macs hit new records

Oct. 29, 2020 4:48 PM ETApple Inc. (AAPL)By: Brandy Betz, SA News Editor117 Comments
  • Apple (NASDAQ:AAPL) shares are down 3.7% AH following fiscal Q4 beats on the top and bottom lines, offset by the downside iPhone revenue, which was widely expected due to the pause in consumer buying ahead of the delayed iPhone 12 launch.
  • Q4 revenue was up 1% Y/Y to $64.69B, $1.35B above consensus, and EPS of $0.73 topped estimates by $0.03.
  • Revenue breakdown: iPhone, $26.4B (consensus: $27.73B); iPad, $6.8B (consensus: $6.14B); Mac, all-time high of $9.03B (consensus: $7.93B);Wearables, Home and Accessories, $7.9B (consensus: $7.23B); Services, all-time high of $14.5B (consensus: $14.12B).
  • Overall gross margin was 38% (consensus: 38.1%). Services margin was 67.2% (consensus: 66.5%) and Products came in at 29.7% (consensus: 30%).
  • "Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment. Our sales results and the unmatched loyalty of our customers drove our active installed base of devices to an all-time high in all of our major product categories. We also returned nearly $22 billion to shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time," says CFO Luca Maestri.
  • Press release.
  • Earnings call starts at 5 PM with a webcast here.
  • Previously: Apple EPS beats by $0.03, beats on revenue (Oct. 29 2020)
  • Previously: Apple declares $0.205 dividend (Oct. 29 2020)
  • Here's the Q4 net sales (in millions) breakdown by region with this year's results in the left column and last year's results on the right. Note the 29% Y/Y decline in Greater China:

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