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iPhones, wearables, services drive all-time record Apple revenue, earnings

Apple has announced the financial results for its fiscal 2020 first quarter that ended Dec. 28, 2019. The company posted quarterly revenue of $91.8 billion, an increase of 9% from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $4.99, up 19%, also an all-time record. International sales accounted for 61% of the quarter’s revenue.

“We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” said CEO Tim Cook in a press release. “During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board.

The iPhone earned $56 billion in the quarter; that’s up from $52 billion last year. Services revenue — which includes Apple Music subscriptions, iTunes Music, iCloud storage plans, paid apps from Apple’s App Store, and Apple Care service plans, Apple Pay, etc.— rose 17% to $12.7 billion, increasing year-on-year from $10.9 billion. The Wearables, Home, and Accessories category (which includes AirPods, AirPods Pro, Apple Watches, HomePods, and more) tallied $10 billion, up almost $3 billion rise from the first quarter of 2019. However, iPad revenue dropped 11% to $6 billion, and Mac revenue dipped 3% to $7.2 billion

“Our very strong business performance drove an all-time net income record of $22.2 billion and generated operating cash flow of $30.5 billion,” added Chief Financial Officer  Luca Maestri. “We also returned nearly $25 billion to shareholders during the quarter, including $20 billion in share repurchases and $3.5 billion in dividends and equivalents, as we maintain our target of reaching a net cash neutral position over time.”

Apple is providing the following guidance for its fiscal 2020 second quarter: revenue between $63.0 billion and $67.0 billion; gross margin between 38% and 39%; operating expenses between $9.6 billion and $9.7 billion; other income/(expense) of $250 million; and a tax rate of approximately 16.5%.

Apple’s board of directors has declared a cash dividend of $0.77 per share of the Company’s common stock. The dividend is payable on Feb.13, 2020 to shareholders of record as of the close of business on Feb.10, 2020.

the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.

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