Apple Inc. stocks fell after a cautious outlook from executives overshadowed quarterly revenue, which topped $ 100 billion for the first time. The company’s shares fell nearly 3% in expanded trading.
Apple has also not presented a sales forecast for the fourth quarter in a row. Previously, the uncertainty of the Covid-19 pandemic was cited in the decision not to submit projections.
“It was an extremely strong quarter. What is likely hurting the stock right now is that it hasn’t provided guidance, ”said Shannon Cross of Cross Research.
Revenue rose 21% to $ 111.4 billion for the period ended December 26, the company said in a statement on Wednesday. According to Bloomberg, analysts expect an average of 103.1 billion US dollars. Earnings were $ 1.68 per share, also beating Wall Street estimates.
Expectations have been high for the company as proposals have been made for a new iPhone super cycle in which millions of existing users upgrade aging cell phones. The company recently launched other new devices, including an updated Apple Watch, and demand for iPads, Mac computers, and services increased among consumers who work and study from home during the pandemic.
Sales were generated by the iPhone 12, the first iPhone line with four new models and 5G capabilities. Cellphone sales were $ 65.6 billion, slightly beating Wall Street’s estimates of $ 60.3 billion.
“This strength in iPhone sales is evidence to Apple bulls that another iPhone super-cycle may be in sight,” said Dan Morgan, senior portfolio manager at Synovus Trust Company. The last super cycle happened in 2014 with the iPhone 6, and the launches have since “felt more like waves against a wave,” he added.
On a conference call with analysts, Apple executives said they expect AirPods and other wearable sales growth to slow in the second quarter of the fiscal year. They also warned that services sales during the period will face tougher comparisons with a year earlier.
In addition to the iPhone, Apple reported iPad sales of $ 8.44 billion, beating forecasts of $ 7.58 billion. The company launched a revamped iPad Air and a faster entry-level model in the quarter. Mac sales were $ 8.68 billion, missing estimates of $ 8.86 billion. This was despite Apple’s introduction of a new MacBook Pro, Mac mini, and MacBook Air during the quarter.
“You were likely faced with delivery bottlenecks during the quarter. Some models still experience significant delays in delivery, ”said Cross.
The influx of new hardware purchases also resulted in strong growth in the services segment, which includes the App Store, iTunes, Apple Music, and iCloud. The company reported $ 15.8 billion in services for the quarter, beating estimates of $ 14.9 billion.
Apple introduced four major new products in its wearables, home and accessories segment in the quarter: the Apple Watch Series 6, Apple Watch SE, HomePod Mini speakers and AirPods Max headphones. With these devices, Apple achieved the strongest quarter so far for this segment with sales of 12.97 billion US dollars. Analysts estimate $ 11.84 billion.
Apple saw significant growth in all major regions, including Greater China, where revenue rose to $ 21.3 billion from $ 13.6 billion a year ago. The company had sales of $ 46.3 billion in the Americas, an increase of approximately $ 5 billion over the same period last year.