Apple records record 4th Quarter revenue of $64.7 billion

Apple today announced financial results for its fiscal 2020 fourth quarter ended September 26, 2020. The Company posted record September quarter revenue of $64.7 billion and quarterly earnings per diluted share of $0.73. International sales accounted for 59 percent of the quarter’s revenue.

“Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services,” said Tim Cook, Apple’s CEO. “Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive. From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver.”

The news of record revenue was tempered by reports that iPhone sales were down more than 16% year-over-year and Apple not providing guidance for the next quarter.

In turn, however, revenue for Macs and iPads both exceeded analyst expectations, with Mac revenue was up 29% year-over-year and iPad revenue rose 46% from the same quarter last year. This is likely due to the Work from Home movement. Sales of Apple’s wearables (Airpods, Beats, Apple Watch) were up 20% YoY.  Service revenue was up 16%.

• EPS: 73 cents
• Revenue: $64.7 billion
• iPhone revenue: $26.44 billion
• Services revenue: $14.55 billion
• Other Products revenue: $7.88 billion
• Mac revenue: $9.0 billion
• iPad revenue: $6.8 billion
• Gross margin: 38.2%

“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,” said Luca Maestri, Apple’s CFO. “Our sales results and the unmatched loyalty of our customers drove our active installed base of devices to an all-time high in all of our major product categories. We also returned nearly $22 billion to shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”

Apple’s Board of Directors has declared a cash dividend of $0.205 per share of the Company’s common stock. The dividend is payable on November 12, 2020 to shareholders of record as of the close of business on November 9, 2020.

Apple’s share price is down more than 4% in after-hours trading.