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Jim Cramer Isn't Worried About Apple's iPhone Revenue

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Apple  (AAPL) - Get Apple Inc. Report reported earnings on Thursday. 

The company said earnings for the three months ending in September, the tech giant's fiscal fourth quarter, were pegged at 73 cents per share, down 4% from the same period last year but 3 cents ahead of the Street consensus forecast.

Group revenues, Apple said, rose 1.03% from last year to $64.7 billion, a figure that topped analysts' estimates of a $63.7 billion tally.

However, Apple said iPhone revenues came in at $26.44 billion, down more than 20.7% from last year and just off the Street forecast of $26.5 billion thanks in part to the late launch of the iPhone 12. China revenues were also disappointing, falling 28.6% to $7.95 billion.

"Last quarter, what we saw was our non-iPhone business was up strong double-digit for the full quarter. And then, if you look at iPhone and you look at it in two parts: one, pre-mid-September, which is pre the point at which the previous year we would have launched iPhones, that that period of time, which was the bulk of the quarter, iPhone was growing from a customer demand point of view," CEO Tim Cook told investors on a conference call late Thursday.

"Our confidence in Apple's ability to retain existing users, attract new users and accelerate growth and profitability has never been higher as Apple enters FY21 with its strongest Product and Services portfolio in years and several tailwinds at its back, including 1) the growing proliferation of 5G technology, 2) work, learn and play from home demand, and 3) rising adoption and monetization of digital services. Most importantly, even without the full impact of new products and services Apple is growing double digits in every category with overall revenue growth of closer to 30% after adjusting for the timing of new iPhone model shipments compared to a year ago," wrote Morgan Stanley analyst Katy Huberty following Apple's earnings. 

Sharing Huberty's opinion, Jim Cramer said sellers of Apple are wrong and he has no doubt Apple will be able to pull in new iPhone 12 buyers after talking to CEO Tim Cook. 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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