Apple Inc came up last week with a crucial holiday shopping quarter sales forecast that came above Wall Street expectations, with its Chief Executive Tim Cook expecting wearable such as AirPods Pro and likely deal between the United States and China on their trade spat by the year end to be resulting in stronger sales.
iPhone sales once was making up over half of Apple’s revenue but currently the chief executive is in efforts of wean off the company from declining iPhone sales and shifting the company’s focus more on earning profits from wearables and services segments. Cook is not only fight at the front of making strategies in stagnating global smartphone sales but is also taking care of his company’s stake amid trade tensions between two of its most important markets of China and the United States.
For fiscal first quarter ending in December, Apple is expecting sales of between $85.5 billion to $89.5 billion, with a mean of $87.5 billion, a figure higher than the analysts’ estimates of $86.9 billion for the same, according to IBES data from Refinitiv.
The forecast comes on the heels of $33.36 billion of revenue generated by the Cupertino, California-based company through iPhone sales in fiscal fourth quarter that ended on Sept. 30, which is in line with revenue of $32.42 billion as was expecting the analysts, according to Refinitiv data.
In the fiscal fourth quarter, Apple’s services segment generated revenue of $12.51 billion that topped analyst estimates of $12.15 billion, while accessories segment also came beating the analysts’ estimates of $6 billion by generating revenue of $6.52 billion.
Apple is currently holding about 450 million subscribers attached to its own or third-party services on its devices, while sales of Apple’s wearables in the fiscal fourth quarter came 54% more than that of the previous year.