Apple’s Second Quarter Results Isn’t as Impressive as It Sounds
Apples cash cow product sales sets out a short fiasco due to the unexpected global impact. The tech giant already expected this downfall but seems to be resilient about its growth in Subscription Services.
Apple’s fiscal 2020 Second Quarter result reported total revenue of $58.3 billion which is just an increase of 1% from the previous quarterly report and earnings per share advanced to $2.55 (an increase of just 4%). International sales accounted for 62 percent of the overall revenue.
Due to the global pandemic, the tech giant faced a 7.2 % downfall in iPhone revenue (excluding accounts of the New iPhone SE) and made just around $29 billion compared to $31 billion in Q2 2019.
Since Apple is still mainly a product based company, this quarter report may impact its gear progress especially when taken in contrast with other tech giants like Google, which offers extensive and exclusive software services. Amid the pandemic disruptions, Apple’s supply chain in China has also been struggling to throttle at full speed in order to make up its dunes. This may stimulate the delay of the upcoming September launch showcasing the new flagship iPhone’s which still, in fact, accounts for half of the company’s revenue. Apple stores outside China still remain close thereby limiting its ability to sell any new products it has in the works. The pandemic may also broil up the complexity of the US trade war with China which may substantially impact the iPhone makers growth.
However, the good news is that as people are spending more time at home there’s a strong increase in Apple’s Subscription services like the Apple Tv+, Apple news and other Apple integrated platforms like the App Store,iMessage etc which reported peak growth in its usage and attained a cash flow of $13.3 billion which is an increase of 16% over last year. Also in Wearable segment, which includes the company’s iconic AirPods and Apple Watch series, the wearable’s grew by 23 % as the revenue was up from $5.1 billion last year to $6.3 billion. Investors also seem to be pleased with getting a boost of 6% in dividends($0.82 per share) of the companies common stock.
“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,” — Tim Cook, Apple’s CEO.
Apple’s recent iPhone SE, although launched amid the pandemic is expected to meet the sales and revenue threshold as projected and is thereby set to flourish the figures in quarters to come.
Thanks for Reading.
