Apple Inc. surprised investors by announcing an increase in revenue from China for its latest quarter. However, the tech giant also reported a decline in overall iPhone sales, falling short of market expectations.
Financial Performance
In the fiscal third quarter, Apple recorded a net income of $19.88 billion, or $1.26 per share, compared to $19.44 billion, or $1.20 per share, in the same period last year. This exceeded the FactSet consensus, which predicted earnings per share of $1.20.
While revenue decreased slightly from $82.96 billion to $81.80 billion, it met the FactSet consensus.
iPhone Sales
Apple's iPhone business generated revenue of $39.67 billion, down from $40.67 billion the previous year and falling below the FactSet consensus of $40.24 billion.
Other Products and Services
iPad revenue declined from $7.22 billion to $5.79 billion, missing the FactSet consensus of $6.44 billion. Mac revenue amounted to $6.8 billion, surpassing analysts' expectations of $6.26 billion.
In the wearables, home, and accessories segment, Apple generated $8.28 billion in revenue, compared to $8.08 billion the previous year. The FactSet consensus for this segment was $8.31 billion.
Services revenue increased to $21.21 billion from $19.60 billion, surpassing analysts' expectations of $20.73 billion.
Strong Performance in Greater China
Apple reported $15.76 billion in revenue from Greater China, exceeding the FactSet consensus of $13.62 billion. This marked an improvement from the previous year's revenue of $14.60 billion in the region.
Apple did not provide guidance in their earnings release due to the ongoing pandemic but may share expectations for the current quarter's performance during the earnings call.
In after-hours trading, Apple's shares declined by 0.5%.
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