[Asia Economy Reporter Joesulgina] "The initial data points are quite good." Apple CEO Tim Cook expressed optimism about the sales of the newly released iPhone 12.
In an interview with economic media CNBC on the 29th (local time), CEO Cook cited 5G support, carrier promotions, and a loyal customer base as reasons for his optimistic outlook on iPhone 12 sales.
The iPhone revenue for the third quarter (June to September) announced that day was $26.44 billion, down 20.7% from the same period last year, significantly below market expectations ($27.93 billion). The iPhone 12, released in major global countries starting in October, will be reflected in the results from the fourth quarter. Regarding sluggish sales in the Chinese market, Cook said, "A large portion of sales in the Chinese market is formed by the new iPhone," and added, "I am confident in growth in the next quarter (fourth quarter, first quarter of the U.S. fiscal year)."
Regarding concerns that Apple's first 5G-supported smartphone, the iPhone 12, was released faster than the 5G network infrastructure was built, he drew a line by saying he is not worried. He emphasized, "We feel that we are entering at exactly the right time."
On the same day, Apple announced third-quarter revenue of $64.7 billion and earnings per share (EPS) of 73 cents. Although this exceeded market expectations, the stock price fell in after-hours trading as the company did not provide guidance for the next quarter. CEO Cook said, "There is still enough uncertainty," and "I do not think it is an environment to provide (guidance)." This was considering uncertainties such as the COVID-19 pandemic, as in the previous quarter.
iPhone revenue was $26.44 billion, and service revenue was $14.55 billion. Mac and iPad revenues were $9 billion and $6.8 billion, respectively, showing growth of 27% and 46% compared to the previous year. CNBC noted the Mac and iPad sales, saying, "It is likely due to trends such as the expansion of remote work during the COVID-19 pandemic."
However, the Chinese market clearly showed sluggish sales. Revenue from the Chinese market, including Hong Kong and Taiwan, plunged 28% from $11.13 billion last year to $7.95 billion.
Meanwhile, on the 30th, Apple will launch 'Apple One,' which combines all its subscription services into one. Apple One combines Apple's cloud service iCloud, music streaming service Apple Music, online video service (OTT) Apple TV Plus, game service Apple Arcade, and Apple News Plus into a single package.
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