(Bloomberg) — Apple Inc. shares fell more than 3% in extended trading after a cautious outlook from executives overshadowed quarterly revenue that topped $100 billion for the first time.
While the company didn’t provide an official forecast for the fourth quarter in a row, executives said sales growth from AirPods and other wearables will decelerate in the current quarter. They also warned that Services sales in the period will face tougher comparisons with a year earlier.
“It was an extremely strong quarter. What’s likely weighing on the stock at the moment is that they didn’t give guidance,” said Shannon Cross of Cross Research.
Sales jumped 21% to $111.4 billion in the period ended Dec. 26, the company said Wednesday in a statement. Analysts, on average, expected $103.1 billion, according to data compiled by Bloomberg. Profit was $1.68 a share, also topping Wall Street estimates.
Expectations have been sky high for Apple on suggestions of a new iPhone “super cycle,” where millions of existing users upgrade aging handsets. The company also recently introduced other new devices, including an updated Apple Watch, and demand increased for iPads, Mac computers and services from consumers working and studying from home during the pandemic. The stock had jumped more than 20% in the past three months, closing Wednesday at $142.06 in New York.
Revenue was propelled by the iPhone 12, the first iPhone line to include four new models and 5G capabilities. Handset sales were $65.6 billion, easily beating Wall Street estimates of $60.3 billion. Consumers were lured by 5G capabilities, especially in China, and the upgraded camera features of the Pro models.
“This strength in iPhone sales provides evidence for Apple bulls that another iPhone super cycle maybe in the cards,” Dan Morgan, a senior portfolio manager at Synovus Trust Company. The last super cycle occurred with the iPhone 6 back in 2014 and launches since then have “felt more like ripples opposed to a wave,” he added.
On a conference call with analysts, Chief Executive Officer Tim Cook and Chief…