While earnings of Apple increased by approximately $18.3 billion in the fourth fiscal quarter of 2021, it fell short of Wall Street’s forecasts. Apple services revenue includes Apple TV+, Apple Music, the App Store, and iCloud.
However, Apple CFO Luca Maestri told analysts that the company’s services division had 745 million paid subscribers, an increase from the “more than 700 million” disclosed during the company’s previous quarterly earnings call. The tech giant did not disclose how its revenue was distributed or the exact number of subscribers across its services.
Revenue-Breakup Of Apple
The fiscal quarter’s services revenue marks a nearly 5% rise over the previous quarter and a 26% increase over the same period last year. Apple’s total sales for the quarter came in at $83.4 billion, falling short of analysts’ projections but up from the previous quarter’s reported $81.4 billion. Product sales, driven by the iPhone, contributed $65 billion of the company’s total revenue in the fourth quarter of 2013.
What Was New At This Apple Event?
Apple’s autumn event, held last week, saw the introduction of new MacBook Pros with M1 Pro and M1 Max processors, the third generation of AirPods, and a more affordable version of Apple Music that can only be operated by voice commands. Apple also targeted amateur and professional filmmakers with its iPhone 13 marketing campaign in September, stressing the phone’s enhanced camera and video editing capabilities.
The company’s profits report on Thursday comes a month after Apple TV+ took home seven Emmy awards, including three for its hit series Ted Lasso.
Maestri mentioned in one of this statements this Thursday, “Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro-environment”
Why Did They Miss The Mark This Time? What Was The Forthcoming Impact?
Apple is experiencing supply issues across “very much” all of its product lines, according to Cook, who went on to say that the company is feeling the pinch. However, despite the fact that production interruptions have largely subsided, Apple believes that chip shortages will be the most significant source of pressure throughout the Christmas season.
Apple’s Chief Financial Officer, Luca Maestri, stated that the business expects an even higher effect from supply restrictions during the current quarter, however, the company still intends to break a new quarterly sales record during the quarter in question. Apple expects a year-over-year sales increase in all product categories, with the exception of the iPad.
As per The Next Hint’s report, during the after-hours trading on Thursday, the company’s stock sank by 3.6%. Sales of Mac increased marginally to $9.2 billion from $9.0 billion, but experts had predicted sales of $9.1 billion. iPad revenue climbed to $8.3 billion from $6.8 billion, substantially above the FactSet average estimate of $7.2 billion for the same period.