Yesterday, Apple reported its financial results for its fiscal 2020 first quarter where an increase of 9% was recorded over the same period last year. The $91.8 billion earnings is well over the $88.5 billion predicted by analysts thanks to the sales of the iPhone 11 lineup and record revenue for Apple’s Services and Wearables.
In the press release, Apple’s CEO Tim Cook said, “We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables. During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board.”
The iPhone contributed to more than half of the Cupertino-based company’s revenue for the first fiscal year bringing in a massive $55.9 billion, this is way above prediction from Wall Street which estimated %51.5 billion income. Apple’s Wearables consisting of the Apple Watch, Home Pod and the AirPods recorded a $10 billion revenue up from the $7.3 billion gotten last year. The Services department including the App Store and Apple Music fell a little shy of analysts’ prediction of $12.98 billion, instead recording $12.72 billion; this is still an increase over last year’s $10.87 billion.
The AirPods is selling fast in the market and Tim Cook told Reuters Apple could not keep up with demands for the first fiscal year. Tim Cook could not give a timeline either of when Apple will be able to meet up with the ever-increasing market demands for its AirPods.
Apple’s biggest threat this year remains the coronavirus which has affected production in Wuhan, China. According to eMarketer principal Yoram Wurmser, Apple expects a stronger Q2 but this could be disrupted due to the uncertainties caused by the coronavirus in China where Apple builds most of its hardware.