Apple Report: Record Revenue and Stocks Declining

Apple Report: Record Revenue and Stocks Declining

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Today we’ll tell you all the most interesting we’ve found in the quarterly report of a world-famous US company Apple. How much? Why? And what for? - this is the list of questions we’ll try to answer.

New report – new record

On January 26th, Apple published the results of its performance during the October-December, 2020 holiday season. No matter how hard market analysts from Wall Street tried, their forecasts were, nonetheless, inferior to the reality. The report turned out to be beyond the boldest expectations of optimistic experts.

Now – to digits

In the fourth quarter of 2020, the revenue of Apple reached the all-time high of 111.4 billion USD, which was 21% than in the same period last year. Meanwhile, analysts had been sure that the revenue in October-December, 2020 would be under 103 billion USD.

The net profit of the company from Cupertino amounted to 28.75 billion USD, which is 2% higher than the same index last year. The return on stock grew by 35%, reaching 1.68 USD per stock. The guys from Wall Street had again missed it, evaluating Apple’s socks at 1.41 USD each.

The GPM in the holiday quarter reached 44.33 billion USD, surpassing the same index of 2019 by 25.9%. As for the CFO, it also reached its all-time high of 38.76 billion USD. As for quarterly dividends, they will amount to 0.205 USD per stock.

More on sales geography

Region-wise, the revenue is distributed as follows: the USD – 46.31 billion USD, Europe – 27.31 billion USD, China – 21.31 billion USD, Japan – 8.28 billion USD, other countries of the AP region – 8.22 billion USD. Hence, 58.4% of the revenue on October-December was generated in the international market. A year before, the statistics of international sales was 3.5% worse.

Product-wise revenue

ProductRevenueShareCompared to Q1, 2020
iPhone65.6 billion USD58.9%+17.23%
Mac8.68 billion USD7.8%+21.16%
iPad8.43 billion USD7.6%+41.12%
Accessories12.98 billion USD11.6%+29.58%
Services15.76 billion USD14.1%+23.96%

Market reaction to the report

As we’ve already mentioned, the results of Q4, 2020 were far beyond the expectations. Moreover, some indices reached their all-time highs. However, from the report day and by the end of the trading week, the stock price of Apple fell by almost 8%.

Experts say this is because investors have no forecasts for the nearest quarter. Note that the company’s representatives stopped voicing any forecasts when COVID-19 struck. However, some explain the decline by poor expectations for January-March, 2021.

Summing up

Apple published an impressive report for Q4, 2020, cheering its investors up by an all-time high quarterly revenue and the CFO, as well as tempting dividends.

Thanks to the pandemics, quarantine measures, and winter holidays, the company demonstrated serious growth of sales in all categories of products and services. The increase in the sales of the iPad tablet was especially high – over 41%.

However, even such an astonishing report did not prevent Apple’s stocks from falling by almost 8% since three trading days ago. We\ll soon find out how fast the corporation will restore its stock price.

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