New York (CNN Business)Apple eked out a modest revenue gain during the three months ending September 30, beating analysts’ projections that sales would fall during the quarter.
The iPhone maker on Thursday reported $64.7 billion in revenue during the quarter, up 1% from the same period last year, and $1 billion ahead of the revenue analysts had expected. Apple ( posted earnings of $0.73 per share, compared to analysts’ projected EPS of $0.70. )
Despite the better-than-expected results, Apple’s stock fell 4% in after-hours trading Thursday.
Investors may be disappointed at the slowdown in sales growth from last quarter, when increased demand driven by the pandemic contributed to an 11% year-over-year revenue gain.
They may also have noted that iPhone sales declined 20% during the September quarter compared with the prior year. That is likely at least in part because this year’s September quarter did not include sales of the new iPhone 12, Apple’s highly anticipated 5G smartphone that launched earlier this month.
Last year’s September quarter sales number included the first 10 days’ worth of sales of the iPhone 11. But the iPhone 12 launch was delayed this year by the pandemic, so it didn’t go on sale until after the quarter had ended.
On a call with analysts Thursday afternoon, Apple CEO Tim Cook said that sales in the China market in particular were affected by the lack of a new iPhone during the September quarter. Sales in China, a key market for Apple, fell nearly 29% during the quarter.
Still, Apple noted that international sales contributed 59% of the quarter’s revenue.
The pandemic still appears to be benefiting other areas of Apple’s business. Revenue from its services segment grew more than 16% from the same quarter last year, to $14.5 billion, and sales from Mac grew 29% to $9 billion — both record highs, the company said.
“Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment,” Apple CFO Luca Maestri said in a statement.
The company on Thursday also announced a cash dividend of $0.205 per share, to be paid out on Nov. 12 to anyone who held shares as of Nov. 9.