Apple today posted results for the second quarter, demonstrating steady growth for the firm amid the effect of the COVID-19 pandemic on its supply chain and retail market. Apple reported $58.3 billion in sales — making for a rise of 1 percent from this period last year — and $2.55 in earnings per share. Analysts had expected $53.8 billion in sales and $2.23 in earnings per share, Bloomberg reports.
Amid the unparalleled global influence of COVID-19, we are proud to say that Apple has risen for the year, led by an all-time service record and a quarterly wearables record,” CEO Tim Cook said in a press release.
Apple warned investors in February that it would not meet its Q2 earnings outlook due to restricted iPhone supply across the globe and reduced demand for its goods in China at the outbreak’s height there. Hardware sales in Q2 except for wearables were down around the board as Cook noted. AirPods and Apple Watch have driven the segment of Apple’s market to growth of 23 percent year-over-year.
With most hardware sales down, Apple needed to expect its services sector (including Apple TV Plus, Apple Arcade, Apple Music, and more) to be a bright spot this quarter because too many people spent much of their time at home. And this has proven true, with utilities touching $13.3 billion in record sales. The figure had stood at $11.5 billion a year before.
Apple’s retail stores in the United States and elsewhere – except mainland China and one in South Korea; they have already reopened – have been closed since mid-March as health authorities try to implore people to follow social distancing recommendations and limit density whenever possible. But Cook has told Bloomberg today that in the next two weeks locations in Austria and Australia will start opening their doors again. Apple will take more “city by area, county by county” retail actions, based on the conditions of that particular location.
The pandemic didn’t deter Apple from launching new goods. We’ve seen a new MacBook Air, iPad Pro (with its Magic Keyboard), and the second-generation $399 iPhone SE making their way to customers in recent weeks. And the company said it would be hosting an online-only edition of its annual Worldwide Developers Conference in June, where you can hope to see the next big updates come up on iPhone, iPad, Macs, Apple Watch, Apple TV, etc.
Rumors also indicated that Apple is facing coronavirus-related development issues for the iPhone lineup this year; the company’s first 5 G smartphones could be shipped longer than their normal timeline when they’re launched this fall.