IPhone shipments weakened, Apples market value fell below 1 trillion U.S. dollars

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 IPhone shipments weakened, Apples market value fell below 1 trillion U.S. dollars


Netease Technologies News Nov. 2, according to foreign media reports, Apple announced its fiscal fourth quarter results for fiscal year 2018 as of Sept. 30. Apples revenue and earnings in the fourth quarter (roughly equivalent to the third quarter of 2018) exceeded Wall Streets expectations, according to earnings reports. In the crucial fourth quarter, the company also adopted a strategy of raising prices to offset the slowdown in sales - the average price of its iPhone was stunning.

After the announcement of Apples earnings, in Nasdaqs after-hours trading on Thursday, Apples share price fell by more than 7% and its market value fell below $1 trillion as the company failed to meet its expected shipment of the iPhone, issued a weaker performance outlook and announced a major restructuring of its earnings structure.

The company expects revenue of $89 billion to $93 billion in the first quarter of fiscal year 2019, slightly lower than analystsforecast of $93.02 billion.

The following is a comparison between Apples fourth quarter performance and Wall Streets previous forecast:

Earnings per share: diluted earnings per share of $2.91, compared with an average of $2.78 previously estimated by analysts surveyed by Refinitiv (Thomson Reuters Finance and Risk Sector);

Revenue: Revenue was $62.90 billion, compared with an average of $61.57 billion previously expected by analysts surveyed by Refinitiv.

IPhone sales: A total of 46.889 million iPhones were sold, compared with 47.5 million expected by FactSet and TreetAccoun.

Apple reported that sales of the iPhone in the fourth quarter were almost flat year-on-year, continuing a mild growth trend in recent quarters. As an offset, Apple has increased the price of many iPhone, making the average price and overall profit rise.

The company reported an average selling price of $793 in the fourth quarter, up 28% from $618 in the same period last year, much higher than the average forecast of $750.78 by analysts surveyed by FactSet and TreetAccount.

Such a high average price may herald strong initial sales of Apples top-selling smartphones, which start at $999 for the iPhone XS and $1099 for the iPhone XSMax. The two smartphones were listed a week before the end of the fourth quarter. It also shows that users are adapting to higher priced devices.

However, the fourth quarter of fiscal year 2018 will be the last quarter for Apple to release such detailed sales data for the iPhone.

At the earnings conference, Apple said it would not release sales figures for the iPhone, iPad and Mac separately from next quarter. Apples three main product lines will be included in a revenue data release.

Luca Maestri, the companys chief financial officer, said: From our recent financial performance, the sales volume within 90 days [after listing] does not necessarily represent the potential strength of our business. In addition, considering the breadth of our product mix and the wide range of sales prices for any product line, sales volume is less important to us than in the past.

Business beyond iPhone

The company reported revenue of $9 billion 980 million from the services sector in the fourth quarter. After a one-time adjustment, the figure was 27% higher than the same period last year, but slightly lower than the average forecast of $10.2 billion by analysts surveyed by FactSet and TreetAccount. Apple services include application store (AppStore), Apple Music and iCloud storage services.

Apple said its services business also includes Apple Pay, the companys digital payment tool, which surpassed PayPal in volume this quarter.

Other Apple products included sales of devices such as HomePods, AirPods and Applewatch, up 31% from a year earlier to $4.23 billion in the fourth quarter. Apple did not release specific revenue figures for its wearable devices, but said the category grew by 50% year-on-year.

The following are the performance of other key products in the fourth quarter:

IPad: 9.7 million units sold, resulting in revenue of $4.09 billion; Mac: 5.3 million units sold, resulting in revenue of $7.41 billion. The company reported double-digit year-on-year revenue growth in all regions in the fourth quarter, with revenue growth in Japan and the Asia-Pacific region of 34% and 22%, respectively. Meanwhile, Apple announced that it would pay shareholders 73 cents per share on 15 November. Apple closed at $222.22 in regular Nasdaq trading Thursday, up 1.54% from the previous day. In the after hours trading, Apples shares fell 6.56% to $207.50 as of the deadline. (Liu Chun) source: NetEase science and technology report editor: Wang Fengzhi _NT2541

IPad: 9 million 700 thousand units were sold with a revenue of $4 billion 90 million.

The company reported double-digit year-on-year revenue growth in all regions in the fourth quarter, with revenue growth in Japan and the Asia-Pacific region of 34% and 22%, respectively.

Meanwhile, Apple announced that it would pay shareholders 73 cents per share on 15 November.

Apple closed at $222.22 in regular Nasdaq trading Thursday, up 1.54% from the previous day. In the after hours trading, Apples shares fell 6.56% to $207.50 as of the deadline. (Liu Chun)