Apple overcomes iPhone slump with strong fiscal 4Q showing

SAN FRANCISCO — Apple is still running a well-oiled moneymaking machine despite cooling demand for its hottest product, the iPhone.

Sales and revenue in the July-September quarter exceeded analyst estimates as Apple’s newest iPhones got off to a better start than expected, even though the devices aren’t that much different last year’s models.

Apple said Wednesday that revenue rose 2% from the same time last year to $64 billion, even as iPhone revenue dropped 9%. Apple’s profit dipped 3% to $13.7 billion, but the earnings per share of $3.03 topped analyst projections.

In another encouraging sign, Apple’s sales in China continued to recover from a sharp drop-off earlier this year. That helped ease worries that Apple might be bruised by President Donald Trump’s trade war with the world’s most populous country.

Apple also signalled its confidence that the momentum will continue in the current quarter, which spans the crucial holiday season. The Cupertino, California, company projects revenue will climb by about 4% from the same time last year.

Part of that growth will likely come from a hotly anticipated video streaming service called Apple TV Plus. It’s scheduled to debut Friday to compete against industry pioneer Netflix and a slew of new entrants, including Disney Plus and HBO Max.

Add it all up, and it becomes easier to see why the stock market’s sentiments about Apple have changed dramatically since the company warned earlier this year that iPhone sales were falling, especially in China. That flop coming out of last year’s holiday season made it clear that the iPhone was losing some of its lustre, raising fears that Apple’s best days might be behind the company.

Those worries hammered Apple’s stock, driving down the price to $142 in early January.

But the stock has been setting new highs this month as investors began to realize Apple CEO Tim Cook had crafted an effective strategy to counteract the waning demand for new iPhones. The stock’s recovery translates to a nearly $500 billion swing in fortune for Apple’s shareholders as the company’s market value has soared back to $1.1 trillion — roughly the same level as its long-time rival, Microsoft.

Apple shares increased $3.24 to $246.50 in Wednesday’s extended trading after Apple revealed its fiscal fourth-quarter financial report.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Many students and staff at St. Joseph High School are in COVID-19 quarantine. (File photo by JeffAdvocate staff)
St. Joseph High School students return to at-home learning today

Majority of students under COVID-19 quarantine

People skate on a lake in a city park in Montreal, Sunday, January 10, 2021. THE CANADIAN PRESS/Graham Hughes
The end of hugs: How COVID-19 has changed daily life a year after Canada’s first case

By March a series of measures fundamentally altered how many Canadians live

SARS-CoV-2 virus particles, which causes COVID-19, emerge from the surface of cells isolated from a patient in the U.S. and cultured in a lab in a 2020 electron microscope image. THE CANADIAN PRESS/AP-HO, National Institute of Allergy and Infectious Diseases - Rocky Mountain Laboratories
Alberta adds 463 new COVID-19 cases on Sunday

The central zone has 818 active cases

Red Deer teacher Janelle Van Tetering had her students write letters to attach to Blankets of Hope, which will be donated to the Mustard Seed. (Contributed photo)
Red Deer teacher, students donate ‘Blankets of Hope’ to those in need

A Red Deer teacher and her students are giving warm blankets and… Continue reading

RCMP have charged a Sylvan Lake man for allegedly defrauding five people of more than $100,000.
Advocate file photo
20-year-old woman killed in collision: Blackfalds RCMP

A 20-year-old woman was killed in a collision on Saturday, says Blackfalds… Continue reading

Terrance Josephson of the Princeton Posse, at left, and Tyson Conroy of the Summerland Steam clash during a Junior B hockey game at the Summerland Arena in the early spring of 2020. (John Arendt - Summerland Review)
QUIZ: How much do you know about hockey?

Test your knowledge of Canada’s national winter sport

Toronto Maple Leafs' Alexander Kerfoot, centre, tries to get the puck past Calgary Flames goalie Jacob Markstrom, right, as Noah Hanifin looks on during first period NHL hockey action in Calgary, Sunday, Jan. 24, 2021.THE CANADIAN PRESS/Jeff McIntosh
Morgan Reilly’s three assists lifts Maple Leafs to 3-2 win over Flames

Leafs 3 Flames 2 CALGARY — Morgan Reilly’s three assists helped the… Continue reading

Green Bay Packers' Adrian Amos (31) reacts after intercepting a pass intended for Tampa Bay Buccaneers' Mike Evans during the second half of the NFC championship NFL football game in Green Bay, Wis., Sunday, Jan. 24, 2021. (AP Photo/Jeffrey Phelps)
Road warriors: Bucs win 31-26 at Green Bay, reach Super Bowl

GREEN BAY, Wis. — Tom Brady and the Tampa Bay Buccaneers’ road… Continue reading

People arrive to be tested for COVID-19 at a clinic in Montreal, Sunday, January 24, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
Too soon to know if Canada’s COVID-19 case decline will continue, Tam says

MONTREAL — It’s still too soon to know whether the recent downward… Continue reading

Flowers are seen at the front door of Dr. Denis Vincent's dental practice in North Vancouver, B.C. on March 31, 2020, after he died of COVID-19. The British Columbia Dental Association has written a letter to Premier John Horgan urging him to include dentists in a priority group for the COVID-19 vaccine. THE CANADIAN PRESS/Jonathan Hayward
Dentists, teachers disappointed they won’t be prioritized for vaccine in B.C.

VANCOUVER — Dentists and teachers are among the groups that are disappointed… Continue reading

Indiana Pacers guard Justin Holiday (8) shoots over Toronto Raptors forward DeAndre' Bembry (95) during the first half of an NBA basketball game in Indianapolis, Sunday, Jan. 24, 2021. (AP Photo/Michael Conroy)
Anunoby’s hot hand helps short-handed Raptors beat Pacers

Raptors 107 Pacers 102 INDIANAPOLIS — OG Anunoby scored a season-high 30… Continue reading

A woman injects herself with crack cocaine at a supervised consumption site Friday, Jan. 22, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Drug users at greater risk of dying as services scale back in second wave of COVID-19

OTTAWA — Under fluorescent lights, Wendy Muckle surveys the supervised consumption site… Continue reading

The Canada Revenue Agency (CRA) headquarters Connaught Building is pictured in Ottawa on Monday, Aug. 17, 2020. nbsp; THE CANADIAN PRESS/Sean Kilpatrick
Taxpayers’ watchdog sees complaints spike, raising worries about pandemic tax season

OTTAWA — Canada’s taxpayers’ ombudsperson says his office has seen a steep… Continue reading

Most Read