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Apple ekes out 1% growth in March quarter despite coronavirus

Apple ekes out 1% growth in March quarter despite coronavirus
[Photo: Nicolas Asfouri/Getty Images]

Apple reported a year-over-year growth of 1% in the first quarter of the year as the coronavirus pandemic descended.

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The company posted quarterly revenue of $58.3 billion.

Apple’s services business had a big quarter, pushed up by users sheltering in place with more time for video streaming and gaming. Apple earned $13.5 billion in services revenue, up 17% from the $11.5 billion it reported in the same quarter last year.

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables,” said Tim Cook, Apple’s CEO.

Revenue from wearables was $6.3 billion, up from $5.1 billion in last year’s March quarter.

Other highlights:

    • iPhone revenue fell to $29 billion from $31 billion last year
    • Mac revenue was $5.4 billion, down slightly from the $5.5 billion last year
    • iPad revenue was $4.4 billion, down from $4.9 billion last year

“Everyone knew that March would be rough for Apple,” said eMarketer principal analyst Yoram Wurmser in a statement. “But given the effects of coronavirus on supply chains in China and demand everywhere, Apple’s performance was pretty solid in Q2.”

In January Apple said it believed it would bring in between $63 billion and $67 billion in revenue for the March quarter, but withdrew that guidance in February as the coronavirus began to seriously impact its business. Because of continued “lack of visibility,” CEO Tim Cook said his company will also not provide guidance for the coming quarter.

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