Apple Beats 2020 third-quarter revenue expectations without iPhone 12 boost: Apple closed the third quarter of the year, its fourth fiscal quarter, with sales of 54,454 million euros (64,700 million dollars), a result that improves expectations even without counting on the usual boost in September of the new iPhones.
The company grew in units such as wearables and services, despite which Apple shares fell after the market close, as sales of iPhones fell.
These are the numbers reported by Apple and those expected by analysts, the latter taken from Bloomberg.
- Revenues for the fourth quarter of 2020: 64,700 million dollars (54,454 million euros). Analysts expected dólares 63.48 billion. Apple invoiced 64.000 million dollars in the same quarter of 2019.
- Earnings per share for the fourth quarter: dólares 0.73 (0.62 euros). Analysts expected dólares 0.70 and a year ago Apple got Apple 0.71 per share(adjusted after its August split in which it gave four shares for each).
- Revenue from the sale of iPhones: 26,400 million dollars (22,614 million euros). Analysts expected 27.060 million. In the same quarter of 2019 iPhones reported 33.360 million dollars.
- Revenue from services: dólares 14,500 million (€12,420 million). Analysts expected 13.870 million dollars and last year in the same quarter Apple invoiced 12.500 million for this segment.
- Revenues from wearables: 7.800 million dollars (6.680 million euros). Analysts expected 7.350 million. Wearable and home accessories generated dólares 6.5 billion in the same quarter of 2019.
Apple's smartphone revenue usually gets a boost from the sale of the new iPhone model, which usually comes out at the end of September, but the iPhone 12's exit delay due to the pandemic indicates that phone sales data are not an indicator of interest in the Tim Cook-led company's new phone.
Apple Beats 2020 third-quarter revenue expectations
IPhone sales were below expectations this quarter, but other business segments such as services or wearables continued to show solid growth. The results show that Apple's strategy of improving on those businesses to boost its results in periods of lower iPhone sales is working.
Mac sales also hit record highs on the back of telework's push by the pandemic. Revenues from this division reached dólares 9,000 million (7,700 million euros) compared to dólares 6,900 million in the same period of the previous year.
However, Wall Street remains more concerned about how the iPhone 12 will behave. Apple offered just a few loose ideas on how they think their new device will behave, but not an estimate of revenue.
Apple's Chief Financial Officer Luca Maestri said the iPhone 12 and its pro version are set to have "a great start" after being unveiled on October 23.
The company expects sales of its most recognized device to grow in December, assuming the impact of the pandemic is maintained.
"Despite the impacts of COVID-19, Apple is in the midst of introducing our main product, and the first response to all of our new products, including our first iPhones with 5G coverage, has been tremendously positive," said Apple CEO Tim Cook in the statement announcing the results
IPhone launches usually generate a lot of expectation, but this year's has been particularly important for the expectations generated around its new device, the first with 5G coverage.
Analysts expect the iPhone 12 to bring significant improvements to Apple for its 5G coverage, a new design and the assumption that many iPhone owners are using older models, so expect increased sales.
Other recent releases such as the iPhone SE or the iPhone 11 boosted Apple's business, but the company has worked in other segments, such as wearables or services to offset its revenue, which has occurred in this quarter.
However, the launch of the iPhone 12 is expected to kick off a cycle of phone updates by users that could last for years.
"We expect this year's launches to drive a significant replacement cycle, which we believe could be multi-year, as new applications become available," RBC Capital Markets analysts Robert Muller and Michael Murray said in a study following the launch of Apple's new device.
Apple Beats 2020 third-quarter revenue expectations
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One of Facebook's initial employees unveils Mark Zuckerberg's 4-step rule to follow your dreams and succeed in your career
Naomi Gleit started working at Facebook in 2005, when she began her career as an administrative marketing assistant.
She is now the vice president of product and social impact, mainly responsible for the platform's efforts to account for voting records —in elections during the pandemic—, donate blood, collaborate with social causes and other projects to promote humanitarian actions through the social network.
Gleit has spent countless hours working directly with Facebook'S CEO and co-founder, Mark Zuckerberg, of which he highlights a peculiarity that, even with the passage of time, continues to draw his attention. This is the "best vital advice" that the company leader shared with her.
In 2013, Gleit and Zuckerberg volunteered to teach an entrepreneurship course to a group of high school students in East Palo Alto, California. One of the Sessions was specifically about personal growth. Zuckerberg took the board and wrote the 4 rules that have marked him throughout his career:
1 Love Yourself.
2 This way you can better serve others.
3 Focus on what you can control.
4 for this very reason, never give up.
"These lessons are still being fulfilled," Gleit tells Business Insider. "Since he mentioned them I have turned them into my own life lessons as well."
In this way, there are two main points to keep in mind. The first is that, before you can serve others, you have to accept yourself, love yourself and take care of yourself. The second is that it is useless to focus on things that are beyond your control; just focus on what you can control in life, and be persistent in your focus on them. "I think it's very, very good advice," says the executive.
So she has applied it to her own life, and has helped her in her career.
"None of this work is easy —being a woman in one of the most important positions in the tech world in one of the most relevant companies in the world and being responsible for great global impacts— but what makes me overcome even the most difficult days is focusing on the things I can control," she summarizes.
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