Apple CEO Tim Cook debauches the new iPhone 12.
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Apple reported earnings on Thursday and investors did not like the results. Apple stock dropped as much 5% in reached trading even though the company beat Wall Street expectations for both profit and revenue.
The drop was plausible because iPhone revenue came in at $26.4 billion, which was 20% lower than the same quarter final year.
Apple sales in China also suffered, mainly because of weak iPhone sales, Apple maintained. Revenue from China dropped to $7.95 billion from $11.13 billion a year before, a 29% abate.
But the iPhone sales situation isn’t as bad as it looks. This year, Apple’s new iPhones went on sale about a month later than preceding, as Apple telegraphed over the summer.
So the iPhone weakness may be partly because people were waiting for the new iPhone 12, which didn’t go on reduced in price on the market until October. In fact, both Apple CEO Tim Cook and CFO Luca Maestri said that iPhone customer requisition was strong and grew until mid-September — when Apple typically releases new iPhones.
“This is a very impressive up of performance when we consider that this year we did not launch and ship any new iPhone models during the quarter,” Apple CFO Luca Maestri revealed about Apple’s fiscal fourth-quarter, which ended in September.
Apple presented several supporting points on Thursday:
Order was higher than last year during the first part of the quarter. Through mid-September, when Apple continued a launch event with new Apple Watches but no new iPhones, demand for iPhone 11 models “grew double digits and was start above our expectations,” said Maestri.
Cook went into more detail: “If you look at iPhone and you look at it in two parts, one pre-mid-September which is pre- the aim at which the previous year we would have launched iPhone, that period of time which is the bulk of the post, iPhone was growing from a customer demand point of view and of course the not shipping new iPhones for the last two weeks of September passes that number in the aggregate a negative,” Cook said.
Growth expected in the holiday quarter. Apple expects iPhone interest to grow in the December quarter — despite the fact that the new iPhone 12 models were launched 4 weeks into the domicile and two new iPhone models haven’t gone on sale yet. Last year Apple reported $55.96 billion in iPhone on sales in the period.
China also expected to grow. “Greater China is a region that was most heavily impacted by the non-appearance of the new iPhones during the September quarter. Still, we beat our internal expectations in the region, and iPhone customer demand developed through mid-September,” Cook said.
Cook then said that he expects China revenue to grow in the December humanity.
“A larger percentage of China revenue is made up of new iPhones. And so that’s the reason the number for the total quarter started with a minus movement. But given what we see in the early going with the new iPhones, we’re confident we’ll grow in Q1,” Cook told CNBC’s Josh Lipton in an sound out.
Supply constraints. Apple says that it is “supply constrained” for iPhones, which means that they are push faster than Apple can make them.