Strong growth in services and accessories, slight decline in iPhone sales, revenue up sharply: Apple released Wednesday quarterly results better than expected and reassured Wall Street.
For the fourth quarter of its lagged year, revenue from the Apple brand was $ 64.04 billion, 1.8% better than the same period last year.
The quarterly results are “the conclusion of a remarkable 2019 fiscal year for Apple”, welcomed on a conference call Apple boss Tim Cook, who also said he was very optimistic for the end of the holidays year.
According to Mr. Cook, this turnover is even the best ever achieved by the company at this time of the year.
For the full year, it stood at $ 260.17 billion, down 2% from 2018.
The apple brand benefited from the boost in revenue from its services business, which generated $ 12.51 billion, 18% better than the same period last year.
This figure bodes well for the Cupertino giant, which is preparing to launch its new Apple TV + streaming service Friday, entering a highly competitive market that includes heavyweights like Netflix and will soon host Disney + and HBO Max.
The platform will be available in around 100 countries at $ 4.99 per month and will be free for one year for any customer buying a new Apple product.
– Accessories –
The quarterly sales of the iPhone, the latest model is marketed since September, earned Apple $ 33.36 billion. This is 9.3% less than last year, but better than analysts expected.
“We are very pleased with the first feedback on the iPhone 11 and iPhone 11 Pro and Pro Max, it's still early, but the trend looks very good,” said Tim Cook.
Accessory sales rose sharply, generating $ 6.52 billion, up 54% from the same period last year. The Apple Watch connected watch and the AirPods wireless headphones have worn this sector, according to the group.
Apple also launched Wednesday a brand new model of headphones, AirPods Pro, supposed to reduce external noise and sold 250 dollars in the United States.
While sales in China and Europe declined slightly, those in the Americas and the rest of Asia grew.
The technology giant, which comes in third place in the smartphone industry behind the Chinese Huawei and Korean Samsung according to recent studies, looking for a few years to diversify its activities and sources of income.
– Potential of 100 million subscribers –
According to Daniel Ives, an analyst for Wedbush Securities, streaming with Apple TV + is clearly in line with this trend.
Apple has “a compelling list of new programs, and we estimate the company will spend $ 6 billion a year on original series and films to boost its streaming ambitions,” says the expert in a note. .
According to him, the advantageous price at which the company will launch its new platform could allow it to attract a large number of subscribers.
“We believe that Apple has the opportunity to bring 100 million consumers on its streaming service in the next 3 to 4 years,” says Ives.
Tim Cook's group posted net income of $ 13.69 billion in the fourth quarter, down 3%, but higher than analysts' forecasts. Over the year, it dropped 7% to 55.26 billion.
Reported by share and excluding exceptional items, the quarterly net profit reaches $ 3.03 against $ 2.84 expected by analysts.
On Wall Street, the stock rose nearly 2% around 2230 GMT in electronic trading after the close.