Apple Reports Rise in Revenue Despite iPhone Sales Slump

Apple has revealed its business performance for the fourth fiscal quarter ended September 26, 2020. The iPhone maker made a total of $64.7bn in revenue up 1 per cent from a similar period last year. Revenue from its flagship iPhones was down by 21 per cent from $33.4bn reported last year to $26.4bn.

The company’s revenue for the quarter was boosted by increased demand for its iPad and Macs, essential devices that have proved handy for those working and studying from home.

Mac sales were up by 29 per cent to $9bn while iPad sales grew by a whopping 46 per cent $6.8bn.

“The September quarter was an all-time high for Mac in the history of the company. And not by a little bit — by $1.6bn,” Tim Cook, chief executive, told analysts.

The company’s wearables business also grew by 21 per cent to $7.9bn while the services category grew 6 per cent to $14.5bn – an all-time high. It wasn’t an impressive all-round quarter for Apple, however. Net income was down 7.4 per cent.

The fall in iPhone revenue was pegged to the late iPhone launch. Apple has for a long time, announced its new iPhones in early September and launching them the last two weeks.

A slight change happened this year when the company unveiled the iPhones in October, and as per now, two models are yet to go on sale.

The company expects to grow its iPhone sales come the holiday season despite shipping the iPhone 12 series four-seven weeks into the quarter, chief financial officer Luca Maestri said.

Apple also, for the first time, released a total of four iPhones in a row: iPhone 12 mini, iPhone 12, iPhone 12 Pro and 12 Pro Max.

The iPhone has been Apple’s biggest revenue driver in recent years, accounting for over 50 per cent of the total in 2019.

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