Apple shares fall despite surprise revenue gain
October 29, 2020 at 22:38
New York (CNN Business) Apple eked out a modest revenue gain during the three months ending September 30, beating analysts' projections that sales would fall during the quarter.
Investors may be disappointed at the slowdown in sales growth from last quarter , when increased demand driven by the pandemic contributed to an 11% year-over-year revenue gain.
They may also have noted that iPhone sales declined 20% during the September quarter compared with the prior year.
Last year's September quarter sales number included the first 10 days' worth of sales of the iPhone 11.
But the iPhone 12 launch was delayed this year by the pandemic, so it didn't go on sale until after the quarter had ended.
However, Cook said business in China, a key market for Apple, is improving during the current quarter.
"Given initial data points that we see on iPhone 12 and 12 Pro," Cook said, "we are confident that we will grow this quarter in China.
Still, Apple noted that international sales contributed 59% of the September quarter's revenue.
Apple increasingly relies on services to drive revenue.
"Despite the strong iPad and Mac sales, iPhone revenue is down and the lack of guidance for the new iPhone 12 sales is not good news for Apple," said Mindshare Worldwide's JohnsonMaestri and Cook both said they're "bullish" about iPhone 12 sales during the December quarter.
"Given the tremendously positive response (to the iPhone 12 lineup), we expect iPhone revenue to grow during the December quarter, despite shipping iPhone 12 and 12 Pro four weeks into the quarter, and iPhone 12 Mini and 12 Pro Max seven weeks into the quarter," Maestri said.
"And so when I think about all of those, and I look at initial data points that we've got on the iPhone 12 and 12 Pro, we are off to a great start."Source