Shares of Apple Inc. (NASDAQ:AAPL) fell more than 5% in pre-market trading Friday after the company reported iPhone sales that missed Wall Street estimates and said revenue in China has fallen sharply.
The company also disappointed analysts and investors by not providing a forecast for the key holiday quarter. However, Chief Executive Officer Tim Cook said the new iPhone 12 has been "well received" by consumers.
Despite the disappointments, sales of Apple’s Mac computers and the company’s services reached all-time highs in the fiscal fourth quarter. The Cupertino, California-based technology giant said sales in the three months ending September 26 came in at $64.7 billion U.S. That beat analysts’ estimates of $63.5 billion U.S. Earnings came in at 73 cents a share, also topping Wall Street expectations.
However, sales of the iPhone fell 21% on anticipation of the new model 12, which arrived later than usual this year. Cook said the response to the 5G iPhone and other new devices has been "tremendously positive."
In Greater China, one of the company’s most important regions, revenue fell 29% to $7.9 billion U.S., the lowest level since 2014. Apple said it expects the iPhone 12 Pro Max, with its larger screen, to do "incredibly well" in the region and the company is confident about growing in China during the upcoming holiday sales period.
Apple shares declined 5.3% to $109.25 in pre-market trading Friday, after closing Thursday at $115.32 U.S. in New York trading. The stock has surged 57% this year and expectations were high ahead of Thursday’s results.
