Late in the evening of October 29, Apple published another financial report – on its accounting calendar on September 26, the fourth quarter of the 2020 fiscal year ended (recall, Apple belongs to manufacturers whose fiscal year does not coincide with the calendar year). Accordingly, the data for the whole year were published. We chose the main thing from the report and the conference call with investors.

Financial performance

  • Apple’s quarterly revenue was $ 64.7 billion, operating income was $ 14.8 billion, net income was $ 12.7 billion (or $ 0.73 per share), and gross margin was 38.2%. For comparison, a year ago these figures are in the same order – $ 64 billion, $ 15.6 billion, $ 13.7 billion (or $ 0.76 per share) and 38%. That is, the margin decreased slightly and, accordingly, the net profit.
  • Apple’s annual revenues reached $ 274.5 billion (a year ago – $ 260.2 billion), operating income – $ 66.3 billion (a year ago – $ 63.9 billion), and net income – $ 57.4 billion or 3.28 per share ( a year ago – $ 55.3 billion or 2.97 per share).
  • International sales accounted for 59% of Apple’s total revenue. Distribution of revenue by region (sales fell the most in China, but this decline was compensated by America and Europe):
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RegionIV quarter. 2020 IV quarter. 201920202019
America$ 30.7 billion$ 29.3 billion$ 124.6 billion$ 116.9 billion
Europe$ 16.9 billion$ 15 billion$ 68.6 billion$ 60.3 billion
China$ 8 billion$ 11 billion$ 40.3 billion$ 43.7 billion
Japan$ 5 billion$ 5 billion$ 21.4 billion$ 21.5 billion
Rest of Asia$ 4.1 billion$ 3.7 billion$ 19.6 billion$ 17.8 billion
Total$ 64.7 billion$ 64 billion$ 274.5 billion$ 260.2 billion
  • At the end of the quarter, the company generated operating cash flow of $ 80.67 billion.As of September 28, 2020, the volume of cash in the company’s accounts amounted to $ 192 billion with total debt obligations of $ 112 billion. Also during the quarter, the company paid out $ 22 billion ($ 18 billion) to shareholders. in the form of share buyback, $ 3.5 billion in dividends, another 3.1 million shares were withdrawn from circulation).
  • In a commentary, CEO Tim Cook noted that the team ended the fiscal year with a record September quarter, driven by the highest-ever sales of Mac computers and services. He also added that Apple is now in the midst of its biggest product line update ever, and initial reactions to the latest innovations, including the first 5G iPhone lineup, have been “overwhelmingly positive.”
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Revenue by product category

IPhone revenue continues to decline, but the Cupertinians’ strategy to offset this decline mainly through increased revenue from digital services is working well. In the past quarter, services once again renewed the revenue record. Mac computers and wearable devices also set a new sales record. Apple’s wearable electronics business is now comparable to Fortune 130 companies in terms of turnover.

Apple's financials: $ 274.5 billion in annual revenues, amid best-ever Mac sales, and record revenue from services and wearable sales

  • For the quarter:
    • iPhone – $ 26.44 billion (a year ago – $ 33.36 billion);
    • Mac – $ 9.03 billion (a year ago – $ 6.99 billion);
    • iPad – $ 6.8 billion (a year ago – $ 4.66 billion);
    • Wearable devices, home devices and accessories – $ 7.88 billion (a year ago – $ 6.52 billion);
    • Services – $ 14.55 billion (a year ago – $ 12.51 billion).
  • For the whole year:
    • iPhone – $ 137.78 billion (a year ago – $ 142.38 billion);
    • Mac – $ 28.62 billion (a year ago – $ 25.74 billion);
    • iPad – $ 23.72 billion (a year ago – $ 21.28 billion);
    • Wearable devices, home devices and accessories – $ 53.77 billion (a year ago – $ 46.29 billion);
    • Services – $ 53.77 billion (a year ago – $ 46.29 billion).
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Plans

  • Apple again declined to forecast revenue for the next three months.
  • Apple now has more than 585 million paying subscribers in total, adding 35 million new paid subscribers in the past quarter. Apple is confident it will reach its earlier target of 600 million paying subscribers by the end of 2020.
  • Apple CEO Tim Cook said that the company plans to release “some more interesting new products” this year (we expect the third presentation next month).
  • On September 30, Apple is launching Apple One, a single subscription to all of its services, and the Apple Fitness + subscription fitness service should be operational by the end of the year.
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