Apple reported a small increase of 2 percent in revenues for its fiscal fourth quarter to September to USD 64.0 billion. Sales were at the high end of the company's guidance, with growth in services, the iPad and wearables offsetting a drop in iPhone revenues. Apple forecast a similar growth rate in total revenues for the December quarter.
Quarterly earnings rose 4 percent to USD 3.03 per share, supported by the ongoing share buyback. Apple generated operating cash flow of USD 19.9 billion in the quarter and said it spent almost USD 18 billion buying back its shares in the period, plus USD 3.5 billion on dividends. The company maintained its quarterly dividend at 77 cents a share.
With the new iPhone 11 range launching only near the end of the quarter, iPhone revenues fell 9.2 percent year-on-year to USD 33.4 billion. Apple CEO Tim Cook said the phones had received a positive response and "we’re very optimistic about what the holiday quarter has in store".
The main growth engine in the past quarter was again services, with revenues up 18 percent to USD 12.5 billion. Apple launched its new credit card in the US and the Arcade gaming service during the quarter, and the company is gearing up to grow service revenue further with the start of the Apple TV+ subscription service in November.
The iPad also contributed to the quarterly sales growth, with revenues up 16.8 percent to USD 4.7 billion. Sales of wearables, home products and accessories jumped 54 percent to USD 6.5 billion after the launch of the new Apple Watch in September and a cut in price for older models of the smartwatch.
For the December quarter, the company forecast revenues of USD 85.5-89.5 billion, a small increase from USD 84.3 billion in the year-earlier period.
