Apple 2nd quarter 2020 results: COVID-19 did not shake the giant

As announced a few weeks ago, Apple, yesterday on the night of July 30, published its financial results for the second calendar quarter of 2020. The period of April, May and June 2020 is therefore targeted by this report, eagerly awaited by the tech world and investors, particularly to see the extent of the damage caused by the coronavirus.

A quarter full of surprises

Analysts, before the official publication of Apple's financial results, expected a 2.3% year-over-year drop in the firm's revenues, to reach $52.56 billion after the second quarter of 2020. All this obviously as a result of the coronavirus which paralyzed businesses and industries in many areas of the globe during the first half of 2020.

Well Apple hascontradicts these pessimistic predictionsby displayingrevenue up compared to 2019, by 11%, to go from 53.8 to 59.7 billion dollars this year.

The company led by Tim Cook rose to $11.25 billion in profit over the quarter, which is also much better than the $10.04 billion profit made in 2019 at the same time.The increase is 12%.

What revenue per product?

• iPhone: $26.4 billion in revenue, compared to $25.9 billion in the second quarter of 2019, an increase of 1.66%

• Services: 13.2 billion dollars in revenue compared to 11.46 billion in the second quarter of 2019, an increase of 14.85%

• Mac: 6.5 billion dollars in revenue compared to 5.8 billion in the second quarter of 2019, an increase of 16.74%

• iPad: 6.6 billion dollars in revenue compared to 5.02 billion in the second quarter of 2019, an increase of 31.04%

• Other products: 6.5 billion dollars in revenue compared to 5.53 billion in the second quarter of 2019, an increase of 16.74%

The iPhone is making little progress, is this normal?

We immediately notice several important points. On the one hand, several product categories are experiencing significant progress compared to last year, such as Services, the iPad, other products (including Apple Watch, Apple TV and HomePod in particular), but also and above all Mac. For services, this is no surprise. These have been gaining more and more weight in the Californian firm's revenues for several quarters already. For Macs and iPads, the increase is more surprising and probably attributable to the boost in teleworking caused by the coronavirus.

Finally, for the iPhone, the increase is only 1.66% over the previous year. Butit remains a performance, firstly, because the second quarter of the year is generally considered the hardest of the year in terms of smartphone sales, with manufacturers generally showing the worst results in this area at this time, secondly, because many Apple Stores closed their doors for weeks during the quarter due to COVID-19. Seeing Apple grow its iPhone sales compared to a coronavirus-free 2019 remains impressive. Especially since analysts were previously banking on a drop in iPhone revenues, for only $22 billion, or $4.4 billion less than the result achieved by the Cupertino company.

Apple resists COVID-19

After afirst trimestermixed, obviously caused by the COVID-19 epidemic and all its collateral effects, Apple displaysexcellent resultsand unexpected for the second quarter. The iPhone has weathered the storm, likely thanks to sales of the 2020 SE model launched last spring.

But, because there is a but, the next few months could be difficult for Apple. On the one hand, the firm does notno forecast figures announcedfor the coming quarter, which is rarely the case and is not really a good sign. In addition, a delay in the release of the iPhone 12 is expected, which could also have an impact on the Californian giant's revenues for the months of July, September and October. Finally, let us remember that with the still unknown evolution of the pandemic, it is complicated to predict the state of the market in the coming times. Everything could get even worse, which is why the predictions made now have less weight than usual.

Tune in later today for a report on the classic exchange between Tim Cook and 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.