Revenue from iPhone sales fell by $3bn compared to this time last year, but Apple has still managed to break records in Q4.
Apple has reported record revenue for its fourth quarter despite a further fall in iPhone sales.
Releasing its latest financial results, the tech giant said revenue for the last three months was $64bn. That was despite revenue from iPhone sales – still the company’s biggest selling product – falling by more than $3bn on this time last year.
However, the firm’s services business, which includes its subscription offerings such as Apple Music, continues to grow – rising from $10.6bn to $12.5bn. The latest addition to that segment of the business, the Apple TV+ video subscription service, launches on Friday (1 November).
Net income for the quarter was $13.7bn – down from $14.1bn in the same quarter a year ago.
Services, wearables and iPad
Apple chief executive Tim Cook said: “We concluded a ground-breaking fiscal 2019 with our highest Q4 revenue ever, fuelled by accelerating growth from services, wearables and iPad.
“With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly anticipated arrival of Apple TV+ just two days away, and our best line-up of products and services ever, we’re very optimistic about what the holiday quarter has in store,” Cook added.
Luca Maestri, CFO of Apple, said: “Our strong business performance drove record Q4 EPS of $3.03 and record Q4 operating cash flow of $19.9bn.
“We also returned over $21bn to shareholders, including almost $18bn in share repurchases and $3.5bn in dividends and equivalents, as we continue on our path to reaching a net cash neutral position over time.”
After releasing its Q4 earnings, Apple provided the following guidance for its fiscal 2020 first quarter – revenue between $85.5bn and $89.5bn, gross margin between 37.5pc and 38.5pc, operating expenses between $9.6bn and $9.8bn, and a tax rate of approximately 16.5pc.
– PA Media