Apple stemmed declines in iPhone sales, with the business returning to growth in its fiscal Q1 2020 (covering 29 September to 28 December 2019), helping the company achieve record revenue and profit during the period.
In the first full quarter to factor in sales of the company’s new iPhone 11 series, revenue for the segment climbed 8 per cent year-on-year to $56 billion.
During a call to discuss its performance, CEO Tim Cook (pictured) hailed “exceptional demand” for the latest iPhone models, highlighting double-digit sales growth across both established and emerging markets.
Cook also noted strong contributions from its Services business, along with the Wearables, Home and Accessories unit, with double-digit gains at both. Services revenue increased from $10.9 billion to $12.7 billion: CFO Luca Maestri said the company now has 480 million paid subscriptions across all of its services, and aims to surpass 600 million by the end of calendar 2020.
Wearables, Home and Accessories revenue jumped 37 per cent to $10 billion, despite product shortages for the company’s AirPods and Apple Watch Series 3. Cook said the company is working hard to increase production of both, and expects Apple Watch supply to meet demand in the current quarter.
Mac revenue dipped from $7.4 billion to $7.2 billion, while iPad revenue fell from $6.7 billion to $6 billion.
Net profit jumped 11 per cent to a record $22.2 billion, with total revenue up 9 per cent to $91.8 billion.
The CEO addressed concerns an outbreak of the Coronavirus in China could impact production, noting alternate suppliers are available for products normally sourced from the hardest-hit city of Wuhan.
However, he said factories across the country which closed for the Chinese New Year holiday delayed reopening from the end of January to 10 February in light of the situation.
Cook added the virus is also impacting retail operations in the country, revealing Apple had closed one of its stores and reduced operating hours for many others.
He said the company is taking additional precautions, offering temperature checks for employees and deep cleaning its shops on a regular basis.Subscribe to our daily newsletter Back