Apple Reports Q4 Results

Apple’s reported numbers were well within — and even at the upper bounds of — their guidance from last quarter, but that doesn’t make for a stellar quarter. They sold fewer iPads this quarter than in any quarter since 2011, while “other” product revenue, which includes the Apple Watch, was down year over yearno surprises there.

But it’s not all bad news. CFO Luca Maestri said that iPhone sales were mostly supply-constrained:

We’ve seen a strong iPhone growth in many markets around the world including Canada, Latin America, Western Europe, Eastern Europe, the Middle East, India, and South Asia. iPhone sales in Greater China declined during the quarter, but initial customer response to iPhone 7 and 7 Plus gives us confidence that our December quarter performance in China will be significantly better on a year-over-year basis than our September quarter results, even as we lap the all-time-record period from a year ago.

Worldwide demand for iPhone 7 and 7 Plus has significantly outpaces supply, particularly on iPhone 7 Plus. And we’re working very hard to get the new iPhones into the hands of our customers as quickly as possible.

Pretty solid for a phone derided by plenty of tech journalists as a recycled design. And — did you hear? — it doesn’t have a headphone jack. Crazy. Apple also reported solid growth in services, though they didn’t release an updated subscriber count for Apple Music.

Guidance for Q1 2017 forecasts revenue of $76–78 billion, which is a similar range to their Q1 2016 forecast, and slightly above actual revenue for that quarter.