Tim Cook in front of an Apple Logo
Source: iphonedigital @ Flickr // CC 2.0

Apple announced its Q1 2020 numbers a few hours back, and the company seems to have bounced back from a rather dull earnings season that was last year. Achieving record numbers across all fronts, the company reported quarterly revenue of $91.8 billion, an increase of 9 percent from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $4.99, up 19 percent, also an all-time record.

Once again, international sales continued to dominate Apple’s numbers with 61% of the overall revenue coming in from outside of the US. In terms of countries however, US continues to remain Apple’s largest market.

In terms of revenue bifurcation, product brought in most of the money in. Apple reported net sales figures for ‘Products’ at $79.1 billion. According to The Tech Portal research team, the figure represents an approximate of 7.7% increase as compared with the same timeframe in the previous year. Last year, in its Q1’19 earnings, the company reported a net sales figure for products at $73.4 billion.

Apple CEO Tim Cook mentioned that this has been due to a surge in demand for iPhone 11 and iPhone 11 Pro models. He says, “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”.

In terms of services too, the company posted record numbers. Revenue from services stood at $12.7 billion, which is a 14.4% jump from the same period in previous year. Last year, Apple’s Q1’19 services revenue stood at $10.8 billion. Cook mentioned that during the holiday quarter, Apple’s active installed base of devices grew in each of its geographic segments and has now reached a staggering 1.5 billion.

Apple recorded an all-time net income record of $22.2 billion and generated operating cash flow of $30.5 billion. The company also returned nearly $25 billion to shareholders during the quarter, including $20 billion in share repurchases and $3.5 billion in dividends and equivalents.

Apple is providing the following guidance for its fiscal 2020 second quarter:
  • revenue between $63.0 billion and $67.0 billion
  • gross margin between 38.0 percent and 39.0 percent
  • operating expenses between $9.6 billion and $9.7 billion
  • other income/(expense) of $250 million
  • tax rate of approximately 16.5 percent