Apple Q1: Just Shy Of US$100 Billion Revenue
Apple has posted its first-quarter results for 2020, with the company posting revenues just shy of a massive US$100 billion ‘fueled by strong demand’ for the new suite of iPhone models.
In what is ‘Apple’s highest quarterly revenue ever’ of $US91.8 billion (A$136 billion) according to CEO Tim Cook, the quarterly results come as the Cupertino based company boasts of ‘all-time records for Services and Wearables’.
Net sales in the Asia Pacific market also saw an increase from US$6.9 billion to US$7.4 billion (A$10.9 billion).
A total of $8.1 billion came from hardware sales, with the rest from services.
With a net income of US$22.2 billion with an operating cash flow of US$30.5 billion, according to CFO, Luca Maestri, Apple also returned ‘nearly $25 billion to shareholders during the quarter, including $20 billion in share repurchases and $3.5 billion in dividends and equivalents’.
Despite the rise in wearables, Cook informed Reuters that Apple, could not make enough AirPods and Apple Watch Series 3 devices to meet demand during the fiscal first quarter and continues to be short on both.
Apple is now working hard to be able to fulfil the demand for both.
However, with a device reach of over 1.5 billion, Cook sees the installation base ‘as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board’.
That reach is set to increase even further with Apple reportedly bumping up iPhone production by 10% according to reports by the Nikkei newspaper.
Picked up by Bloomberg, Apple has reportedly ordered upwards of 65 million units of current iPhone models plus 15 million units of the rumoured low-cost iPhone.
With the company expecting to unveil the new phone in March Apple is providing the following guidance for its second quarter:
- revenue between US$63.0 billion and US$67.0 billion
- gross margin between 38.0% and 39.0%
- operating expenses between US$9.6 billion and US$9.7 billion
- other income/(expense) of US$250 million
- tax rate of approximately 16.5%
According to Reuters, Apple is taking a wider approach to its financial guidance for Q2 as a result of the coronavirus in China.