Tim Cook, CEO of Apple, and Luca Maestri, CFO of the Californian firm, answered questions from journalists during the classic interview taking place after the publication of the financial results for the last quarter. We have detailed these results in this article.
As part of the conference call, additional information was available to supplement the balance sheet figures.
The iPhone 12, an astonishing success
First, Luca Maestri and Tim Cook say to each other positively surprised by iPhone sales. Indeed, the delay in the release of new models has raised fears of lower revenues than anticipated. But the scores achieved by the new generation of iPhone have exceeded forecasts and even made it possible to achieve overall profits that also went beyond Apple’s calculations.
The two men clarified that sales were mainly led by iPhone 12 Pro and 12 Pro Max, and that, more generally, all the new generation models still have an interesting margin for improvement. Indeed, in many areas of the world, especially in Europe, 5G is not yet well deployed. And this does not necessarily encourage the renewal of his smartphone for an iPhone number 12, equipped precisely with 5G.
Constantly growing services
As seen in our article on Apple’s Q4 2020 financial results, the services keep generating more and more revenue over time.
Luca Maestri and Tim Cook are delighted to have reached in 2020 the 620 million paying subscribers, all services combined. The initial goal was to exceed 600 million before January 2021, so the contract is fulfilled. Note that compared to the 4th quarter of 2019, Apple had only 140 million paying subscribers…
Confirmation in China, potential in India
Finally, the conference call also allowed Apple’s two senior officials to say a little more about the short and long term future.
In the coming months, according to Luca Maestri in particular, the Macs could meet a great success, on the one hand thanks to the introduction of the new M1 models at the end of 2020, on the other hand thanks to the teleworking pushed by the confinement of the populations, in place since the end of 2020 in different countries around the world.
Otherwise, while in China, Apple achieved excellent scores, thanks in particular to the new generation of iPhone and the very well-developed 5G network in the country, India constitutes a market with great potential for the Californian firm. It should make efforts to succeed in grabbing market share there from its competitors, as it has been doing in China for just a few years now.
So much for the outline of this interview between Tim Cook, Luca Maestri and various journalists. You can find it in full here, in English.
Don’t miss our full review of Apple’s Q4 financial results here.