Apple 1st quarter 2020 results: services and accessories avoid the rout?

Apple last night published its financial results for the first quarter of 2020. The period of January, February and March 2020 is therefore targeted by this report, awaited by the tech world and investors, in particular.

An average quarter?

And as expected, the Cupertino company was unable to achieve the forecasts. While these spanned revenues of between $63 billion and $67 billion for the quarter in question, the company only managed to achieve a small$58.3 billion in revenue.

This is not a surprise in itself, Apple had already announced in February that it would not be able to meet its objectives for the quarter.

Tim Cook's company still rises to11,2 billions of dollars in profit. So of course, it is less than the 11.6 billion dollars in profit over the same period in 2019, but it must be admitted that the drop is very slight despite the situation. In addition, revenues increased slightly, by $300 million from one year to the next. And then Apple proudly announced that it had reached anew record for the quarter for the number of active Apple devices worldwide.

But it is obvious that the results are mixed, as shown by the revenues per product.

What revenue per product?

• iPhone: $28.96 billion in revenue, compared to $31.1 billion in the first quarter of 2019

• Services: $13.35 billion in revenue (+17% year over year)

• Mac: $5.35 billion in revenue

• Wearables, home and accessories: $6.28 billion in revenue

• iPad: $4.37 billion in revenue

Is the iPhone in the red?

What immediately interests analysts is the significant drop in revenues generated by iPhones. This is clearly to be attributed to the global pandemic situation of the Chinese coronavirus.

But the Californian company has understood for years now that it is better not to rely entirely on the iPhone. In this diversification strategy, particularly towards services, Apple seems to be succeeding, once again. The firm indeed displayshistorical revenue for services.

In this regard, it now has 515 million paying users on all its platforms, including Apple Music, Apple TV+, Apple Arcade and Apple News+. Services also include revenue from the App Store and iTunes, as well as Apple Pay.

Otherwise, note that the accessories category reaches anew quarterly record, carried by the Apple Watch, but also including the HomePod and the Apple TV.

In the end, in the gray of the situation, and despite the iPhone in the red, the Californian giant keeps some lights in the green. And this allows him not to lose face at this extraordinary start to the year.

Tune in later this morning for a report on the classic exchange between Tim Cook and the journalists, taking place after each announcement of the results.

FindApple's full report here.

Editor-in-chief for iPhon.fr. Pierre is like Indiana Jones, looking for the lost iOS trick. Also a long-time Mac user, Apple devices hold no secrets for him. Contact: pierre[a]iphon.fr.