Apple reported better-than-expected fourth-quarter results, beating Wall Street estimates. Nevertheless a larger decline in iPhone revenues and a lack of management frightened investors.
Shares of Apple (NASDAQ: AAPL) lost 3.5% in off-hours trading after this report.
Apple reported earnings per share of $ 0.73 from revenue of $ 64.70 billion. Analysts asked by Investing.com expected EPS of $ 0.71 with revenue of $ 63.98 billion.
IPhone revenue, which accounts for about half of total revenue, fell to $ 26.4 billion from $ 33.4 billion a year earlier, negatively exceeding estimated revenue of $ 27.93 billion. The lower-than-expected amount occurred as consumers are expected to wait to purchase the iPhone 12, which was launched last month.
Revenue from Apple services, including Apple News, Apple TV + and iCloud, rose to $ 14.55 billion from $ 12.5 billion, beating estimates of $ 14.12 billion.
Wearable accessories, household and other accessories generated revenues of $ 7.88 billion, an increase of $ 6.52 billion, surpassing the $ 7.23 billion consensus.
“Apple remains an attractive stock to buy even after this year’s 57% increase. The company’s innovative machine, its expanding service segment and wearable equipment offer compelling reasons to remain bullish in future growth. Apple’s latest products, including 5G phones, show that the company is on the right track to monetize its massive technology base. Any weakness in numbers should be taken as an opportunity to buy, “said Haris Anwar of Investing.com.