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Apple iPhone sales continue to buoy company

by Mark Tyson on 29 January 2020, 12:11

Tags: Apple (NASDAQ:AAPL)

Quick Link: HEXUS.net/qaeibf

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Apple reported its Q1 2020 financials yesterday evening, after the stock markets closed in the US. The good news for Apple investors was that the company reported quarterly revenue of $91.8bn, an increase of 9 per cent compared to last year, and an all-time record. Apple's revenue was quite a higher its own guidance, and significantly better than Wall Street analysts expected. At the time of writing, after investors have had a few hours to get to grips with the finer points of the release, Apple shares are up about 2.8 per cent afterhours.

"We are thrilled to report Apple's highest quarterly revenue ever, fuelled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables," said Apple CEO Tim Cook, in a prepared statement. Cook highlighted that the Apple installed user base is now over 1.5bn - and this user base grew in all geographic regions.

Above you can see Apple's revenue in millions, comparing calendar Q4 2019 with the results from a year previously broken down by product category. You will observe the strong increase in iPhone sales, which make up the bulk of Apple's revenue receipts ($56bn of $91.8bn). Meanwhile, interest in iPad tablets and Mac computers continues to dwindle.

Even though Apple has seen success with the latest iPhone 11, I feel it really needs to innovate more to prevent its mobile phones joining the downwards spiralling iPad and Mac hardware. Recently rivals have excited with new form factors, and delighted with slick offerings in the low-to-mid range price brackets.

The Wearables, Home and Accessories category did well to climb above $10bn in income for the most recent quarter. CNBC notes that thanks to this milestone the Apple Watch, AirPods, and Beats headphones products alone could make a 'Fortune 150' company.

Services also grew an encouraging amount for Apple, up 12.7 compared to a year ago. Remember this category includes the likes of Apple TV+, App Store, Music, iCloud and AppleCare.

Apple's guidance for Q2 2020 has been pared back and is bracketed wider than usual due to worries about the potential impacts of the deadly coronavirus.



HEXUS Forums :: 5 Comments

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Only Apple device i have ever had was a iPad Mini which i passed on a long time ago due to hardly ever using. Having never bought into the Apple system and their “do it our way or not at all” methods its sad to see that other tech companies seem to be going (or gone) that route as well.
I am now tempted to step into the system as the iPad Pro would best cover my needs rather than any other manufacturers premium tablet which could well mean that a future phone upgrade could see a switch from Android to IOS.
The Apple desktop / laptop range does look rather dated now which could be a factor in reduced sales.
My first Apple device was a Mini as well, when that died (or rather I broke the screen dropping it) I replaced it with the new Mini, I was kinda holding off as the Mini hadn't had a replacement, once it did I bought in.
I've now also got an iPhone, only a 6s though as not a fan of the new huge phones, but given both of the kids and the missus are Apple I'm kinda along for the ride..
I have avoided it. Utterly.
My wife is stuck in the Apple groove and doesnt seem to want to escape tbh

When a business makes SO much money for SO long…it is bound to be the model that every other company wants to replicate.

Sadly no one is cutting a new swathe… they're just following the along trying to get rich quick
quarterly revenue of $91.8bn yet speculatively the company is worth over $ 1 trillion … the trend of overvaluing a company in the US stocks. If you buy whole of Apple today how many years will it take to get your cash back?
I probably *will* get an iPhone once my SE is done with… I've just never much liked android. But that said, I will never buy a Mac.

I'm honestly a little difficult for any company to capture into their ecosystem.. I use an iPhone, a ChromeBook (secondary) and Windows for my main rig :) I like all of them in their respective roles, but don't really like their offerings in other areas…