Apple

With the iPhone, Mac, and iPad down, Watch and Services Go Up

Apple

Apple announced quarterly income of $58.3 billion today, increased 1%, and earnings after costs and taxes of $11.2 billion. Nonetheless, the original narrative is how that income is being generated and, where it’s dropping off.

  • iPhone: down $2.1 billion to $28.9 billion
  • Mac: down $162 million to $5.4 billion
  • iPad: down $504 million to $4.4 billion
  • Wearables, Home, and Accessories: up $1.2 billion to $6.3 billion
  • Services: up $1.9 billion to $13.3 billion

This is the first time in recent recollection that the iPhone made less profits, about $28.9 billion than Apple’s other products combined, $29.4 billion. The company would be in negative territory if it weren’t for Apple’s determined push into services and wearables.

According to CEO Tim Cook, the most significant single non-iPhone star is the Apple Watch, which had a record quarter. It is hard to figure out exactly how many Apple Watches the company managed to sell considering that the described category involves Home (mostly HomePod, which is mostly a sales dog), and Accessories, a grab-bag category with mice and keyboards and cables, it definitely did great. Another lead in wearables, AirPods, newly entered by the noise-canceling AirPods Pro.

Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables.

CEO Tim Cook

It is probable that Apple will be extending the wearable tech division, given the current performance. In addition to this, Apple services including Apple Music, Apple News+, Apple TV+, Apple Arcade, and iCloud storage will unquestionably expand. Since the services provide up to over $13 billion, Apple will most probably be investing in these.

Photo Credit: Getty Images

We are proud of our Apple teams around the world and how resilient our business and financial performance has been during these challenging times. Our active installed base of devices reached an all-time high in all of our geographic segments and all major product categories. We also generated an operating cash flow of $13.3 billion during the quarter, up $2.2 billion over a year ago. We are confident in our future and continue to make significant investments in all areas of our business to enrich our customers’ lives and support our long-term plans — including our five-year commitment to contribute $350 billion to the United States economy.

Apple CFO Luca Maestri

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