So much for Apple slouching into its services business.
The empire that iPhones built is doing absurdly well for itself, Apple revealed in its latest earnings report. The company beat analysts’ expectations on earnings and revenue for its first fiscal quarter of 2020. When the news dropped, investors initially sent the iPhone maker’s stock price up by more than 3% during after-hours trading.
Apple says its iPhone sales hit nearly $56 billion in the first quarter (analysts had expected $51.62 billion, per CNBC). Almost across the board, Apple bested analysts’ expectations—except when it comes to services revenue, where Apple fell short of some estimates by $1 billion. Apple boss Tim Cook called it “sort of a blockbuster quarter all the way around,” perhaps while diving into a vault of riches more vast than Scrooge McDuck’s.
Here are the key numbers for Apple’s first (fiscal) quarter of 2020:
- Revenue: $91.8 billion
- Earnings per share: $4.99
- iPhone sales: $55.9 billion
- Services revenue: $12.7 billion
- Next quarter revenue: Between $63 billion and $67 billion
When it comes to stock gains, 2019 was Apple’s best year in the past decade. The hype cycles that once defined Apple’s launch days may have dampened down, but Apple continues to ship seemingly innumerable products, often at higher prices than its competitors.
Cook attributed Apple’s “highest quarterly revenue ever” to the latest iPhones, as well as “all-time records for Services and Wearables.” On services, the CEO reportedly said Apple’s latest service (Apple TV Plus) is “off to a rousing start,” but he did not share specific subscriber numbers. And as for Apple’s “Wearables, Home and Accessories” business, it brought in about $2.7 billion more this past quarter than it did during the same time a year earlier.
We’ll have more analysis after the earnings call. Stay tuned . . .