Apple reported its quarterly results, turning in a record quarter on strong Mac, iPad and Services.
Apple reported $64.7 billion in revenue, a record for the fiscal fourth quarter, coming in at $0.73 earnings per diluted share. This amounted to a net profit of $12.7 billion.
The one disappointing part of the report was iPhone revenue, coming in at $26.4 billion. This was down from $33.4 billion in the year-ago quarter, a nearly 21% decline. It’s likely, however, that many customers were holding off for the iPhone 12, with its 5G compatibility. If so, the next quarter could well come in as a super-cycle upgrade quarter.
On the other end of the spectrum, Mac, iPad and Services were up. The Mac accounted for $9 billion, a 28% increase over the year-ago quarter. Similarly, the iPad represented $6.8 billion, a 46% increase from the year-ago quarter.
Services were the star of the show, coming in at $14.55 billion, a 16.3% increase over the year-ago quarter. For perspective, that puts Services as second only to the iPhone as part of Apple’s business. As the smartphone market has become saturated, Apple has been emphasizing the importance of Services for its long-term business. This quarter’s results highlight that it’s strategy is paying off.
“Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services,” said Tim Cook, Apple’s CEO. “Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive. From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver.”
“Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment,” said Luca Maestri, Apple’s CFO. “Our sales results and the unmatched loyalty of our customers drove our active installed base of devices to an all-time high in all of our major product categories. We also returned nearly $22 billion to shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”