Apple beats quarterly outlook with growth in iPhones, wearables, services

Nieuws Mobiel Wereld 29 JAN 2020
Apple beats quarterly outlook with growth in iPhones, wearables, services

Apple performed better than expected in its fiscal first quarter to December. Revenues rose 9 percent year-on-year to a record USD 91.8 billion, ahead of its guidance thanks to strong growth over the holidays and growth in services, wearables and iPhones. Net earnings increased 19 percent to USD 4.99 per share. 

Apple maintained its quarterly dividend at USD 0.77 per share. Operating cash flow reached USD 30.5 billion in the quarter, and Apple spent USD 20 billion on share repurchases and USD 3.5 billion on dividends in the period. 

iPhone revenue up 8%

The launch of the new iPhone 11 series last autumn helped boost sales in the December quarter. iPhone revenues were up 8 percent year-on-year to USD 56 billion. 

Services again showed the strongest growth, up 17 percent to USD 12.7 billion. Apple introduced during the quarter its new credit card, gaming service and the subscription service Apple TV+. The company counted a total 480 million subscriptions to Apple Music, iCloud, Arcade and Apple TV+ at year-end and raised its target for the end of 2020 to 600 million subscribers, from 500 million previously. 

Revenues from the iPhone were down slightly to USD 6.0 billion from USD 6.7 billion a year ago. Sales of wearables, home products and accessories did better, up 37 percent to USD 10.0 billion, after the launch of the new Apple Watch in September and a price cut for the older watch models. 

Outlook

For the fiscal second quarter, Apple forecast revenues of USD 63-67 billion, up from USD 58 billion a year ago, and a gross margin at 38-39 percent.

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