Apple has declared a set of very positive financial results, as the result of a balanced mix of national and international sales. As well as ‘developed markets’ the company saw double-digit growth in several emerging markets as well. As well as the latest iPhone models, growth was boosted by strong sales with products like Watch, AirPods, and Beats.
Overall, iPhone sales ($55.9 billion) and Apple’s services ($12.7 billion) were among the most prominent contributors to the company’s growth. This led to shares in Apple climbing two percent in after-hours trading.
According to Tim Cook, Apple’s CEO: “We’re thrilled to report Apple’s biggest quarter ever, which set new all-time records in both revenue and earnings. We generated revenue of $91.8 billion, which is above the high end of our guidance range, with revenue growth accelerating for the third consecutive quarter.”
However, growth for the next quarter could be lower. Cook indicates that the coronavirus outbreak, which has made headlines during January 2020, has affected the company’s China manufacturing and retail operations.
Commenting on the news, Haris Anwar, senior analyst at financial markets platform Investing.com, tells Digital Journal: “It’s a very strong earnings report that exceeds analysts’ expectations in many ways. The biggest driver is Apple’s revival in iPhone growth, which surpassed expectations by a large margin.”
There are other issues as well that account for the growth, as Anwar reports: “The other factor driving these robust earnings was the company’s wearables division, which had a particularly strong quarter thanks to rising demand for Apple Watch and AirPods. The 37 percent revenue growth for those products confirms that Apple is ramping up its focus on products besides its flagship iPhone that diversifies the company in a powerful way.”
Anwar summarizes: “This potent mixture of strength in the core product and rising diversification is what has been driving Apple stock to record highs almost every other day.”