iPhone manufacturer Apple Inc.'s fourth quarter sales beat expectations but declined for the fourth quarter in a row. The company has also warned that revenue in the upcoming holiday quarter will be about the same as it was during the same period last year.
The implication that the company may not return to growth during the holiday quarter send shares down by 3% in extended trading.
Here's how Apple fared compared to expectations:
Although the Cupertino-based company did not give formal guidance, CFO Luca Maestri said that December quarter revenue will be "similar to last year." However, this December quarter will have one lesser week. Analysts were projecting a 5% revenue growth in the holiday quarter, which is the most important for the company.
Revenue from the iPad and the company’s wearables category, which includes its smartwatch line, will drop significantly during the quarter, Apple said.
The fourth straight quarter of revenue decline is the longest streak for Apple since 2001, as the company struggles with a sluggish computer market and shaky demand in China.
Results suggest that Apple is facing a bigger deceleration in China than feared. The government there has imposed bans on US technology in some workplaces, and a new phone from Huawei Technologies Co. is providing fresh competition. Revenue from that region amounted to $15.1 billion last quarter, down slightly from a year earlier and well short of the $17 billion analysts had predicted.
Company research platform Tofler recently revealed that Apple's India business saw 48% year-on-year growth in financial year 2023 to ₹49,332 crore. CMR data also showed that the company was the top contributor in the super-premium segment with a 63% share.
Apple CEO Tim Cook also said the company was investing “quite a bit” in generative artificial intelligence.
The had a favorable year-over-year comparison this cycle because 2022’s iPhone 14 Pro models faced supply constraints due to shutdowns at Apple’s manufacturing partners in China. The iPhone 15 Pro had no such limitations.
Cook said that Apple had over 1 billion paid subscriptions, which include both Apple’s own services as well as apps on the App Store that bill on a recurring basis.
Although Apple's shares ended 2% higher in regular trading, they fell over 3.5% afterhours post the results announcement.
(With Inputs From Agencies.)
First Published: Nov 3, 2023 4:56 AM IST
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