Apple Inc (NASDAQ:AAPL) topped fourth-quarter earnings estimates, but shares fell as iPhone sales missed expectations.
The tech giant reported earnings of US$2.91 per share on revenue of US$62.9 billion compared with US$2.07 per share on revenue of US$52.58 billion in the previous year’s fourth quarter.
The California-based company beat Wall Street estimates of US$2.78 EPS on revenue of $61.57 billion.
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Shares of Apple fell nearly 4% to US$213.15 in Thursday after-hours trading.
iPhone sales totaled 46.89 million, falling below analyst estimates of 47.5 million.
Although iPhone sales missed, the average selling price of an iPhone was US$793, above the forecast of US$750.78.
The new series of iPhones were even more expensive this time around. The iPhone XR is the lowest cost phone at US$749. The iPhone XS starts at US$999 while the cost of an iPhone XS Max starts at US$1,099.
iPad sales totaled 9.7 million, below the 10.53 million units expected by analysts.
The company sold a total of 5.3 million Macs this quarter.
Apple’s “other products” category, which includes its wearables like the Apple Watch and Airpods as well as its home products like the HomePod speaker, racked up US$4.23 billion in revenue.
Revenue from Apple’s fast-growing services segment, which includes Apple Music, Apple Care, iCloud and the App Store, reported revenue of US$9.98 billion, slightly below analyst expectations of US$10.2 billion.
Apple ended the quarter with US$237.1 billion in cash on hand.
Contact Lenore Fedow at lenore@proactiveinvestors.com
Follow her on Twitter: @LenoreMariee