Buy an iPhone interest-free with Apple Card

Yolanda Curtis
November 5, 2019

Apple also had a strong fourth fiscal quarter for iPad sales, even though the newest model-the seventh-gen iPad, featuring a larger display and ability to connect a keyboard-was not launched in time to be part of the quarterly results.

The tech giant reported revenue rose 1.8% in the September quarter to $64.04 billion, driven by rising sales of wearables including its smartwatch and services such as apps, streaming-music subscriptions and mobile payments. Sales of wearables, home products and accessories jumped 54 percent to United States dollars 6.5 billion after the launch of the new Apple Watch in September and a cut in price for older models of the smartwatch.

"We've had a really good September [in China], and the lead of that is the reception of iPhone 11, 11 Pro and 11 Pro Max", Apple CEO Tim Cook said in the earnings call.

"Apple is more prepared than previous years to face strong headwinds in China", said Shanghai-based Canalys Research Analyst Louis Liu. The company delivered earnings per share of $3.03 versus the street's estimate of $2.84 on revenue of $64 billion compared with expectation at $62.99 billion.

Quarter-over-quarter, Apple saw its Q4 2019 revenue increase by 2-percent; as well, its quarterly EPS was up by 4-percent.

Services revenue hit an all-time high of $12.5 billion while global sales accounted for 60 per cent of the quarter's revenue.

Apple saw modest sales declines in its "greater China" region and in Europe and Japan, but this was offset by gains in North America and elsewhere in Asia. Expectations had been for $86.5 billion for the quarter.

Apple has been seeking to shift its revenue mix amid a slumping smartphone market and growing competition in the segment.

In an interview with Reuters, Cook said that the pricing of the new iPhone 11 has been a big factor. Apple launched its new credit card in the U.S. and the Arcade gaming service during the quarter, and the company is gearing up to grow service revenue further with the start of the Apple TV+ subscription service in November.

Mac revenues were also down nearly five per cent to $6.99bn, as buyers likely hold off until Apple refreshes its MacBook lineup with faster Intel chips and an all-new 16in model.

Tariffs might hit more categories of goods including Apple's iPhone on December 15, though USA and Chinese negotiators were working on a deal. "We are well on our way to accomplishing our goal of doubling our fiscal year 2016 Services revenue during 2020", Cook told the analysts.

Apple reported its latest results just days before the debut of Apple+, a streaming service that will compete directly with offerings from Netflix and Disney.

Other reports by iNewsToday