For Apple’s first fiscal quarter of 2020 (which includes
the final three months of 2019), it posted record
revenue of $91.8 billion, topping its own estimates and
besting last year’s holiday quarter by nearly 10 percent.
iPhone sales alone were up more than 7 percent, as
the iPhone 11 and 11 Pro proved to be strong holiday
sellers. That’s not quite a record – Apple sold $61bn
worth of iPhones in the 2018 holiday quarter – but it’s
the strongest results in two years.
Of course, the iPhone wasn’t the only performer.
As has been the case for the past few quarters,
Services and Wearables were also up in the quarter,
bringing in a combined $23bn. Wearables, in particular,
showed tremendous growth, with a year-over-year
increase of more than 40 percent.
Services were also up an impressive 17 percent,
but only marginally ($250 million) over the previous
quarter. That suggests that a large portion of Apple
TV+ subscribers are enjoying the free year Apple
offers with every new device purchase. In the earnings
call, CFO Luca Maestri said Apple has 480 million
subscribers across its own and third-party paid
services through iTunes, with a goal of reaching 600
million by the end of 2020.
CEO Tim Cook touted the strength of the iPhone
and also Apple’s overall customer growth. “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.”ForApple’sfirstfiscalquarterof 2020 (whichincludes
thefinalthreemonthsof2019),itpostedrecord
revenueof$91.8billion,toppingitsownestimatesand
bestinglastyear’sholidayquarterbynearly 10 percent.
iPhonesalesalonewereupmorethan 7 percent,as
theiPhone 11 and 11 Proprovedtobestrongholiday
sellers.That’snotquitearecord–Applesold$61bn
worthofiPhonesinthe 2018 holidayquarter–butit’s
thestrongestresultsintwoyears.
Ofcourse,theiPhonewasn’ttheonlyperformer.
As hasbeenthecaseforthepastfewquarters,
ServicesandWearableswerealsoupinthequarter,
bringinginacombined$23bn.Wearables,inparticular,
showedtremendousgrowth,withayear-over-year
increaseofmorethan 40 percent.
Serviceswerealsoupanimpressive 17 percent,
butonlymarginally($250million)overtheprevious
quarter.ThatsuggeststhatalargeportionofApple
TV+ subscribersareenjoyingthefreeyearApple
offerswitheverynewdevicepurchase.Intheearnings
call,CFOLucaMaestrisaidApplehas 480 million
subscribersacrossitsownandthird-partypaid
servicesthroughiTunes,withagoalofreaching 600
millionbytheendof2020.
CEOTimCooktoutedthestrengthoftheiPhone
andalsoApple’soverallcustomergrowth.“Duringthe
holidayquarterouractiveinstalledbaseofdevices
grewineachofourgeographicsegmentsandhasnow
reachedover1.5billion.Weseethisasapowerful
testamenttothesatisfaction,engagementandloyalty
ofourcustomers–andagreatdriverofourgrowth
acrosstheboard.”