The Delayed launch of the new Apple 5G phone did not work for the company and it resulted in a major quarterly decline in iPhone sales in the last two years. Apple lost $100 billion from its stock value and fell over 5% at one point in after-hours trading on Thursday.
The Company used to deliver new phones each September every year but this year pandemic pushed apple to delay the launch of the new flagship model, back a month.
Even though Apple beat all the estimated about its overall revenue and profit due to thriving sales of other products such as AirPods and Macs. But iPhone sales dropped 20.7% to $26.4 billion which is a bit alarming for the company. Investors were also expecting fewer iPhone sales but the delayed in the launch of the new iPhone makes the situation worst, especially in China where more people have access to 5G technology than in the U.S or Europe.
The Company announced its financial figures for the fiscal fourth quarter ended on September 26. The apple revenue was $64.7 billion compared to analysts estimated $63.7 billion. The company had no opening weekend iPhone sales due to delayed launch and no figures were added in the fourth quarter.
The CEO of Apple, Tim Cook is optimistic about the iPhone 12 sales. He said that he is very much excited about the timing of the new iPhone with 5G technology. Tim said that he is hopeful that the new iPhone 12 will help the company to recover sales in China where sales went down by 28.5% due to late launch of new models.
The chief financial officer, Luca Maestri said that the company is expecting revenue growth in double-digit percentages in the fiscal first quarter from the sales of services and non-iPhone products.
Logan Purk, an analyst with Edward Jones, said that the iPhone sales will increase but it will not meet the expectations as customers do not believe that the only 5G is a convincing reason for an upgrade.
Apple service revenue rose 16.3% to $14.5 billion. Apple is going to launch the bundle of the Apple paid services on Friday and it will be known as Apple One. Apple reduced its dependency on new iPhone models but tumble on Thursday still shows that iPhone is still Apple`s main product.
Apple generated $7.9 billion from its accessories sales. Mac and iPad sales rose to $9.0 billion.