Apple CEO Tim Cook expressed optimism about early sales data for its flagship iPhone 12, as the tech giant reported fourth-quarter earnings that exceeded Wall Street’s expectations on Thursday.
IPhone sales have long accounted for the bulk of Apple’s revenues. The latest model went on sale on October 23rd and is the first Apple smartphone to use 5G networking technology.
“I can tell you that we have a great start and I am very pleased with the way they are promoting,” said Susan Lee Cook of FOX Business Network. He noted that Apple has “received data in only five days so far.”
The iPhone 12 did not affect Apple’s results for the fourth quarter ended in September. According to Refinitiv, the tech giant reported adjusted earnings of 73 cents per share for the fourth quarter, higher than analysts’ expectations of 70 cents. Quarterly revenues were $ 64.7 billion, surpassing Apple’s record for the period ending in September and Wall Street forecasts.
The company did not provide forecasts for the first quarter. Apple has refrained from forecasting sales in recent quarters due to uncertainty surrounding the pandemic.
IPhone revenue in the fourth quarter was $ 26.4 billion, which fell short of expectations ahead of the release of the new model.
Apple shares fell nearly four percent after the close of trading, but are up more than 57% this year.
“Our outstanding September quarter results conclude an outstanding fiscal year as we set new all-time highs in revenue, earnings per share and free cash flow despite an extremely volatile and challenging macro environment,” said Apple CFO Luca Maestri.
Apple executives highlighted growth in the service segment, which includes iCloud, Apple Card and Apple Pay, as well as the company’s news, music and entertainment offerings. The division’s revenue for the quarter was $ 14.5 billion.
The Mac platform brought in $ 9 billion, and the iPad platform brought in $ 6.8 billion. Sales of wearable devices, including AirPod and Apple Watch, totaled $ 7.9 billion.
“We set an all-time record for the Mac, an all-time record for services, and a record for September for the most wearable devices,” added Cook. “We set quarterly records for the Americas, Europe and the rest of the Asia-Pacific region, and India had a quarterly record in September, thanks in part to a strong reaction to our online store launch this summer.”
Cook added that sales in the Greater China region “exceeded our domestic expectations.”
The company announced a cash dividend of $ 0.205 per common share. Dividends will be paid on November 12th.