Apple wraps fiscal year nicely, has bleak, cloaked visions of holidays

That enthusiasm for the iPhone XS, XS Max and XR may be waning faster than anyone expected.

Apple released its earnings results for its fourth fiscal quarter, announcing very positive results on its balance sheet: total revenue was up 20 percent year-over-year to $62.9 billion with $14.1 billion turned over in profit, up 32 percent.

46.9 million iPhones were sold for $37.2 billion of revenue — the average sales price of $793.18 is a nice 10 percent bump from the previous sequential quarter. On other fronts, Apple sold 9.7 million iPad units with strength fading from the 6th-gen iPad 9.7. Macs performed decently with 5.3 million units sold. The company also made $9.98 billion from services this quarter. Other products, such as AirPods, Apple TV, Apple Watch, HomePod, Beats products as well as first- and third-party accessories, amassed $4.2 billion.

But the positivity has been drained to the past as the forecast for the busy holiday season seems to have disappointed brokerage houses. Revenue is expected to range between $89 billion and $93 billion — somewhat of a disappointment for investors looking into iPhone supercycle hype as their estimates centered around $93 billion.

In an interview with Reuters, CEO Tim Cook said that foreign exchange volatility will put a $2 billion damper on its next report. He is worried about geopolitical conflicts weakening disposable income in certain markets like Brazil, India, Russia and Turkey. Most importantly, Cook also spoke of potential part shortages for the TrueDepth camera system that makes features like Face ID and Animoji possible on all three new iPhone models as only a few vendors are able to provide for stock.

Continuned growth in China — five quarters of double-digit growth in a row and counting — would not be able to offset these factors.

The company told investors in its conference call today that it would also stop reporting unit shipments for iPhones, iPads and Mac devices, furthere exacerbating negative reaction in the share market. As of press time, after-market trading has brought AAPL down 7 percent from its closing price.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.