IPhone revenue was disappointing, and Apple’s share price plummeted

Apple shares fell sharply after the US technology company announced that revenue from the iPhone did not meet the forecast and revenue in the Chinese market went down.

According to Bloomberg, Apple’s third quarter financial report showed that the total third quarter revenue of “defective apple” reached 64.7 billion USD, higher than expected 63.5 billion USD of analysts and 1% higher than with the same period last year.

In particular, revenue from the iPhone decreased by 21% because consumers waited for the iPhone series that Apple has just launched in the beginning of the fourth quarter, later than the annual new product launch schedule of the company.

One good news is CEO Tim Cook said that the new iPhone series – Apple’s first 5G smartphones – received very positive feedback from the market.

In China, one of Apple’s most important markets, its third-quarter revenue fell 29% year-on-year to $ 7.9 billion, the lowest level since 2014.

Chief Financial Officer (CFO) Apple Luca Maestri says that the iPhone 12 Pro Max with a larger screen is very popular in China, and Appletin expects a growth in sales in this market in the second quarter of the year. .

During the overtime session in New York market, Apple shares sometimes dropped 4% to 110.68 USD / share, after closing at 115.32 USD / share. The share price has risen 57% since the beginning of the year, and before Apple announced its third-quarter results, investors had high expectations.

Apple continued to disappoint investors when it did not provide forecasts for Q4 business results – the key quarter of the year due to the exciting year-end shopping season. The reason given by the world’s largest technology company for this absence is the impact of the Covid-19 pandemic, amid rising viral infections in the US and Europe.

Apple’s last quarter of the year business will be determined by a new line of iPhones, a new iPad Air, a cheaper HomePod, and a Mac computer using Apple’s own processor. In an interview with analysts, Apple said the iPhone will be a key contributor to its double-digit revenue growth this quarter.

Maestri is optimistic about fourth-quarter iPhone sales, saying the new iPhone series has “the driving force behind 5G connectivity, a once-in-a-decade opportunity”.

Cook said Apple entered 5G at the right time, when carriers are improving and expanding their networks weekly. He also said 5G networks were “pretty advanced” in China, and that this should help iPhone sales in the second quarter of the year.

In the third quarter, the iPhone generated $ 26.4 billion in revenue for Apple, compared with the $ 27.1 billion expected by Wall Street.

iPad brought in $ 6.8 billion, higher than the forecast figure of $ 6.1 billion and up 46% over the same period last year. Revenue from Mac reached $ 9 billion, compared with a forecast of $ 8 billion and up 28%.

The services segment, including the App Store, Apple Music, and iCloud, brought in $ 14.5 billion in revenue, up 16.3% over the same period in 2019, and exceeded the forecast of $ 13.9 billion by the world area given.

The wearables, home appliances and other products segment posted revenue of $ 7.9 billion, higher than the forecast of $ 7.4 billion and up 20.9 percent. This segment is one of Apple’s fastest growing divisions and includes two “hot” products, the Apple Watch and the AirPod.