Apple announces the financial results for fiscal Q2 2020 (ending 28 March 2020)-- revenues for the quarter total $58.3 billion, a 1% Y-o-Y increase, with international sales accounting for 62% of the quarterly total.
“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,” CEO Tim Cook says. “In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund.”
Such growth slowdown confirms a February 2020 Apple forecast of a slower return to normal conditions, leading to the company failing to meet previous revenue guidance for the March quarter. The iPhone business took the most damage, as sales are down by -7% Y-o-Y from $31bn in fiscal Q2 2019 to $28.9bn, the likely result of soft Chinese sales and coronavirus-related production delays. iPad revenues total $4.37bn, while Mac sales reach $5.35, still not enough to offset declining iPhone sales.
However the company does see a couple of bright spots in wearables and services. Apple Watch, home and accessories revenues (Apple continues to lump the three categories under a single figure) are up by 24% Y-o-Y in Q2 2020, reaching $6.3bn. On the other hand services revenues reach $13.3bn, a 16% Y-o-Y increase, perhaps unsurprising as customers stuck at home take the plunge with Apple TV Plus.
Looking to the future, Apple actually has no guidance for Q3 2020, but will surely have something to say regarding the coming months in a future earnings call with investors and analysts.
