Apple CEO attributes China sales plunge to iPhone 12 delay; Apple One services bundle launches tomorrow

Oct. 29, 2020 5:40 PM ETBy: Brandy Betz, SA News Editor103 Comments
  • In a post-earnings interview with CNBC, Apple (AAPL) CEO Tim Cook says the company decided not to issue current quarter guidance for the third time due to the continuing coronavirus uncertainties.
  • Cook: "If you look at the case count, the case counts are climbing in Western Europe. They’re climbing in the United States. And so there’s still a sufficient level of uncertainty out there… we don’t believe that’s an environment to guide into."
  • As for the new iPhone 12 models, Cook says "initial data points are really quite good."
  • Cook attributes the 29% Y/Y decrease in Greater China net sales to the fact that a "larger percentage of China revenue is made up of new iPhones" and says Apple is "confident" the market will grow in FQ1.
  • CFO Luca Maestri echos the positive tone in an interview with FT: "We had new iPhones in China a year ago, this year we didn’t. We’ll be growing in China in the December quarter."
  • On the earnings call, management says it expects broad iPhone sales to grow in the December quarter despite the late shipment timing for the iPhone 12 family. All other segments are expected to post "double-digit" growth in the period.
  • And Maestri tells Bloomberg that the Apple One services bundle will launch tomorrow. Apple One includes Apple Music, Apple TV+, Apple Arcade, and extra iCloud storage and starts at $14.99/month for an individual plan.
  • Apple shares are currently down 5% AH to $109.55.
  • Previously: Weak iPhone sales drive Apple shares lower after FQ4 beats; Services, Macs hit new records (Oct. 29 2020)

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