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Apple, fewer iPhones but more revenue while stock price suffers
Apple, fewer iPhones but more revenue while stock price suffers
Fintech

Apple, fewer iPhones but more revenue while stock price suffers

By Eleonora Spagnolo - 30 Oct 2020

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Apple is increasing its revenues against expectations but is disappointing the financial market with its declining stock price

The negative trend is due to the uncertainty following Apple’s results for the quarter just ended. In fact, Apple increased revenues to $64.7 billion (+1%), compared to the expected $63.7 billion, while net profit fell from $13.7 billion to $12.7 billion and earnings per share from 76 to 73 cents, but still exceeded market expectations at 71 cents. 

The collapse in iPhone sales weighs heavily. 

The Cupertino-based company explained that it sold $26.4 billion worth of iPhones, a 21% drop from the previous year. This collapse is due to Apple announcing the iPhone 12 later than the annual presentations. Many users therefore waited to buy iPhones, waiting for the new models. 

However, the lockdown and probably distance learning seemed to be an incentive for iPad and Mac sales, with revenues 46% and 29% higher respectively.

According to Tim Cook, who reported the figures, the outlook is good with expected double-digit revenues

Yet the uncertainty surrounding the risks of new lockdowns weighs on possible sales, so much so that Apple has not provided forecasts for the next quarter. 

Apple stock price suffers from the uncertain scenario

In this dubious landscape, the second wave of Covid-19 weighs heavily. Yesterday, during after-hours trading, Apple shares lost about 4% from $115 to $110. 

Forecasts are still extremely uncertain today. It must be said that the entire financial market is suffering from fears of a new lockdown in Europe and the United States, which are also suffering pending the outcome of next week’s presidential elections. 

In any case, the drop these days is nothing too worrying, considering that the growth of Apple YTD (year to date, i.e. from January 1sy, 2020), is 57%. The 12-month gain, on the other hand, is 92%, as Apple’s shares were worth around $60 on October 30th of lat year. 

Probably the next few days, when the national governments’ measures on the restrictions to contain Covid will be clear, could have a decisive effect on the sales of Apple products and could also affect the shares of the Cupertino company. 

CZ buys an iPhone

Among the iPhone buyers, a prominent one is Changpeng Zhao, CEO of the Binance exchange. With a post on Twitter, CZ has revealed his latest purchase: an iPhone 12 Pro, featuring a MagSafe transparent cover. 

He has written on Twitter: 

“No car, no boat, no house. Just phones. I am a sucker for these. But I do use them heavily. So good utility. I can’t tell any difference from 11 to 12 yet. Made sure Binance app works, lol”.

 

Eleonora Spagnolo
Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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