Apple’s Q4 2020 earnings surpass expectations without iPhone 12 sales

The tech giant earned $64.7 billion in revenue this quarter

Apple Park

Apple surpassed fiscal fourth-quarter 2020 revenue expectations without the boost of iPhone 12 sales, hitting $64.7 billion USD (roughly $86 billion CAD) in revenue and $0.73 per share amid the ongoing COVID-19 pandemic.

This is a slight increase year-over-year from last year’s $64 billion USD (about $85.2 billion CAD) in revenue during the same quarter. The number also surpasses the $63.7 billion USD (roughly $84 billion CAD) Wall Street expected the company to earn this quarter.

“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, in a recent press release.

The tech giant’s Mac and iPad lined showed strong sales performance, with iPad sales hitting $6.8 billion (roughly $9 billion CAD) compared to $4.66 billion USD (about $6.2 billion CAD) last quarter, and the Mac earning $9 billion USD (roughly $11.9 billion CAD) in sales compared to $6.99 billion USD (about $9.3 billion CAD) during the same quarter last year.

Regarding the company’s growing services division, the tech giant earned $14.5 billion (roughly $19.3 billion CAD) in revenue this quarter from $12.51 billion (approximately $16.6 billion CAD), and wearables, home and accessories revenue took home $7.8 billion (about $10.3 billion CAD) from $6.52 billion (approximately $8.6 billion CAD) last quarter.

On the other hand, iPhone revenue declined to $26.4 billion (about $35 billion CAD) from $33.36 billion (roughly $44 billion CAD) during the same quarter last year.

Apple’s Q4 earnings typically include the sale of new iPhone models, but because the tech giant is running slightly behind when it comes to its typical smartphone release strategy, iPhone 12 series devices aren’t included in this report.

Instead, the iPhone 12, iPhone 12 mini, iPhone 12 Pro and iPhone 12 Pro Max will be bundled in Apple’s Q1 holiday 2021 earnings report. While the iPhone 12 and iPhone 12 Pro are already available and released on October 23rd, the iPhone 12 mini and iPhone 12 Pro Max are releasing on November 13th.

“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,” said Cook.

Apple hasn’t provided earnings guidance during the last two quarters due to the uncertainty surrounding how the pandemic will affect its sales. As expected, the tech giant once again didn’t offer guidance regarding how it expects the iPhone 12 series to perform next quarter.

Looking to the future, Apple is expected to launch its first Mac computer to feature its own ARM-based silicone this coming November. The tech giant also announced that ‘Apple One,’ its bundle of subscription services that includes Apple Music, Apple TV Plus, Apple Arcade and iCloud storage for $20.95 CAD per month on October 30th.

At the time of writing, Apple’s stock is down five percent in after-hours trading.

Source: Apple