Apple’s Mac and Other Service Businesses hit New Q4 Earning Records
Apple just announced its company’s fourth quarter fiscal earnings, reporting a revenue of $64.7 billion and $0.73 earnings per share in a quarter. For Tim Cook, Apple’s CEO, this period is clearly “led by all-time records for Mac and services.”
Last quarter, Apple’s iPad and Mac lines demonstrated strong performance as more people continue learning and working from home because of the coronavirus pandemic. With a tally of $9 billion in sales, the mac had its highest quarter ever.
In September, Apple introduced the latest version of the entry-level iPad at $329, increasing the gadget’s performance. iPad Air’s mid-tier version got a makeover with a whole new design. It now matches the iPad Pro and comes with a faster processor. Sales of iPads increased by 46%.
Unlike in the previous years, and because both the iPhone 12 and the 12 Pro version didn’t go on sale until the middle of October, these earnings don’t impact the early sales for Apple’s most recent smartphones. The results? The sales of iPhones were soft. However, the Q4 numbers include the early sales of the Apple Watch SE and Apple Watch Series 6, which launched last September. The iPhone 12 mini and iPhone 12 Pro Max will be available for preorder on November 6, and begin shipping one week later.
Apple didn’t provide earnings forecasts and guidance in the last two quarters because of the uncertainties surrounding the pandemic. That continues until today, as the company is not providing guidance for the quarter that will end this December either. Thus, Apple isn’t giving any clues for how huge it expects the upgrade cycle of the iPhone 12 to be.
There will be an additional “premier” tier in Apple News Plus, as well as in the forthcoming Apple Fitness Plus service. Apple One will begin at $19.95 each month for a family plan and $14.95 for an individual plan. The Apple One bundles are expected to further fuel Apple’s already-booming services, which got a revenue of $14.5 billion this quarter.
This November, Apple is expected to announce the first Mac computers that will be powered by its own silicon. This will kick off its transition away from Intel processors. This was announced back in June by Apple during the Worldwide Developers Conference. Furthermore, they gave away a development kit to help many app makers prepare for the huge switch.
The old apps designed to operate on Intel hardware will still work through software called Apple’s Rosetta 2.
In line with all of this, the company continues to face strong scrutiny from investigations and lawmakers focusing on its grip over the App Store. There is also an ongoing legal battle with Epic Games, Fortnite developer.
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