Apple sees increase in revenue despite shut down of stores

It reported $58.3 billion in revenue for the three months to March, up 1 per cent from a year ago

Popular demand for Apple’s services business and sales of accessories such as AirPods and watches has boosted the company’s revenues slightly in the past quarter, despite the shut down of its retail stores across the globe due to coronavirus.

Apple reported $58.3 billion (£46.5bn, €53.1bn) in revenue for the three months to March – its fiscal second quarter – which is up 1 per cent from a year ago and well above the $54.5 billion expected by analysts.

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Net profits fell 2.7 per cent to $11.25 billion.

Chief executive Tim Cook said he had been confident in January that the group was headed for a record start to the year, until the pandemic led to the shutdown of its factories in China and brought a “sharp decline” in worldwide demand in March.

The company also attributed its new iPhone SE and updates for the iPad tablet and MacBook Air computer to its growth.

In particular, iPad and Mac sales are expected to improve in the current quarter from a year ago thanks to online learning and people working from home.

Apple shares were down about 2.5 per cent in after-hours trading following the quarterly results. Apple had originally expected an increase in total revenues of 9-15 per cent, to as high as $67 billion, but it withdrew that guidance in mid-February as the coronavirus caused factory shutdowns across China.

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Conditions deteriorated further when Apple closed all its retail operations outside China.

Sales of the iPhone smartphone fell 6.7 per cent to $29 billion, accounting for just under half of revenue for its fiscal second quarter.

That slowdown was offset by strong increases in the services and wearables divisions, where revenues were up 17 per cent and 22.5 per cent to $13.3 billion and $6.3 billion respectively.

Mac sales were relatively steady at $5.4 billion, as were iPad sales, at $4.4 billion.

FURTHER READING: Apple share price analysis for March: how the coronavirus affects the company

FURTHER READING: Apple hit with record €1.1bn fine

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