Ap­ple de­liv­ers best-ever quar­ter, pow­ered by iPhones, ser­vices

Muscat Daily - - BUSINESS -

San Fran­cisco, US - Ap­ple posted record re­sults for the fi­nal three months of last year de­liv­ered by gains in iPhone sales even as the com­pany tran­si­tions to dig­i­tal ser­vices and wear­ables.

Strik­ing a som­bre tone on an earn­ings call, chief ex­ec­u­tive Tim Cook said the com­pany is closely watch­ing the deadly vi­ral out­break hit­ting China, where Ap­ple has cus­tomers, part­ners, sup­pli­ers and em­ploy­ees.

Ap­ple gave a wider than usual rev­enue fore­cast range of US$63bn to US$67bn for this quar­ter, cit­ing un­cer­tainty re­gard­ing how the out­break will af­fect its busi­ness.

Ap­ple’s net profit hit an all­time high of US$22bn on record quar­terly rev­enue of US$91.8bn, the tech gi­ant said of the re­sults which were far stronger than most an­a­lyst es­ti­mates.

Rev­enue was ‘fu­eled by strong de­mand for our iPhone 11 and iPhone 11 Pro mod­els, and all­time records for ser­vices and wear­ables,’ Cook said.

Ap­ple’s net in­come in the hol­i­day quar­ter end­ing De­cem­ber 28 set a new record for the Cal­i­for­nia-based com­pany, ac­cord­ing to chief fi­nan­cial of­fi­cer Luca Maestri.

The re­sults come with Ap­ple seek­ing to shift its rev­enue mix amid a slump­ing smart­phone mar­ket and grow­ing com­pe­ti­tion in the seg­ment, and as it re­lies more on ser­vices such as music, stream­ing tele­vi­sion and other dig­i­tal con­tent.

“With each Ap­ple prod­uct that a cus­tomer buys, I think they get tighter into the ecosys­tem,” Cook said.

Ap­ple stopped re­port­ing unit sales for the iPhone, which has been the main cash-gen­er­a­tor for the com­pany in re­cent years, but rev­enue for its smart­phone sales was up nearly eight per­cent in the quar­ter at US$55.9bn.

Ser­vices rev­enue rose 17 per cent from a year ago to US$12.7bn, driven by the launch of its Ap­ple TV+ ser­vice and its new credit card. Paid sub­scrip­tions to Ap­ple ser­vices hit 480mn in De­cem­ber, caus­ing the com­pany to ex­pect to eclipse its 500mn tar­get in the months ahead and eye hit­ting 600mn by the end of this year. The Ap­ple TV+ on-de­mand stream­ing ser­vice launched in more than 100 coun­tries at US$4.99 per month, at a price lower than those of­fered by ri­vals such as Net­flix.

Ap­ple shares have dou­bled from a year ago - lift­ing its val­u­a­tion to more than US$1.3tn -- as the com­pany has ex­panded its ser­vices with tele­vi­sion stream­ing, dig­i­tal pay­ments and wear­able tech such as its AirPods and an up­dated Ap­ple Watch.

(Bloomberg)

Tim Cook, chief ex­ec­u­tive of­fi­cer of Ap­ple Inc

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