Apple shares tumbled on Friday, as investors and analysts processed the tech giant's announcement it would no longer publish unit sales for its iPhones, iPads, or Macs in future earnings reports. Reuters reports that Apple shares have fallen by six percent following the release of the earnings report, knocking $67 billion off the company's total value.
In contrast, Apple's services business, which includes Apple Music and iTunes, continues to grow, with revenue up 17% on this time previous year to just under 10 billion dollars (£7.6 billion). Based on Apple's revenue and unit sales, the average price of iPhones sold during the fourth quarter was $793. "Q4 revenue was up 29 per cent over a year ago, an increase of over $8 billion to a new September quarter record fuelled by continued momentum for iPhone 8, 8 Plus and X, and the very successful launch of iPhone XS and iPhone XS Max", Cook added.
Apple's Mac and iPad unit sales fell by 2% and 6%, respectively, during the quarter compared to a year ago. The CFO tried to soft-soap the decision by telling analysts "a unit of sale is less relevant today than it was in the past" due to the wide range of models and price points and the reporting change is in the "best interest of investors".
Investors punished Apple in after-hours trading Thursday for one or both of two reasons.
Cook was confident, however, that Apple will be able to get through the circumstances, as the company is armed with "our strongest line-up of products and services ever".
Apple's "privacy commitment now extends to iPhone unit disclosure", Amit Daryanani of RBC Capital Markets wrote in a note to investors. In third place on the revenue chart come the Mac computers, bringing in a decent $7.41 billion from 5.3 million units sold, while 9.7 million iPads chipped in with a "mere" $4 billion. A new MacBook Air and Mac mini were also launched here in NY on Tuesday. That's a new all-time high for the business.
Apple's iPhone sales are set to dip by around a quarter in India's holiday season fourth quarter, putting them on course for the first full-year fall in four years, industry research firm Counterpoint said on Saturday. The positive results will please Apple's shareholders as well, as they'll be receiving $0.73 in cash dividends per share.
Apple Inc. gave an underwhelming forecast for the key holiday period, suggesting weaker-than-expected demand for the company's pricier new iPhones. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif also has an irrational love of Cleveland sports.
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