Apple’s fourth quarter sales were in line with expectations, but earnings came out ahead as Mac, iPads and Apple Watch delivered strong revenue growth.
The company reported fourth quarter earnings of 73 cents a share, on revenue of $64.7 billion.
Wall Street was expecting Apple to report fiscal fourth quarter revenue of $64.7 billion with non-GAAP earnings of 70 cents a share. Apple declined to provide an outlook for the first quarter due to uncertainty about the COVID-19 pandemic.
CEO Tim Cook said Apple is in the middle of its “most prolific product introduction period ever” with its 5G iPhone 12 lineup as well as products that align well with remote work and education. Apple said that international sales were 59% of the total revenue pie. Europe fared well in the quarter.
While fourth quarter product sales were down a bit from a year ago, services revenue surged to $14.55 billion, up from $12.51 billion a year ago.
For the year, Apple delivered sales of $274.5 billion with net income of $57.41 billion.
By product line, iPhone sales for the fourth quarter were $26.44 billion, down from $33.36 billion a year ago. Some of that decline was due to the wait for the iPhone 12 launch.
Mac sales in the fourth quarter were $9.03 billion, up from $6.99 billion a year ago. iPad sales also surged with sales of $6.8 billion, up from $4.66 billion a year ago. Wearable sales also fared well with sales of $7.88 billion, up from $6.52 billion.