Apple Delivers Blockbuster Quarter Despite Slow iPhone Sales

Posted on July 31, 2020 by Paul Thurrott in Apple, Apple Watch, iOS, iPadOS, Mac and macOS with 10 Comments

Apple reported net income of $11.25 billion on revenues of $59.7 billion in the quarter ending June 30; revenues surged 11 percent year-over-year despite a global pandemic and slower-than-expected iPhone sales.

“Apple’s record June quarter was driven by double-digit growth in both products and services[,] and growth in each of our geographic segments,” Apple CEO Tim Cook said in a prepared statement. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation.”

Apple’s iPhone business was basically flat from a revenue perspective: It posted $26.4 billion in revenues compared to $26 billion in the year-ago quarter. The iPhone is still, by far, Apple’s biggest business, and it now represents 44 percent of its total revenues.

All of Apple’s other businesses saw sharp upticks in the quarter. The Mac grew from $5.8 billion revenues a year ago to $7 billion in the most recent quarter. iPad grew from $5 billion to $6.6 billion. Wearables grew from $5.5 billion to $6.45 billion. And services grew from $11.5 billion to $13.1 billion.

In Apple’s post-earnings conference call, Mr. Cook said that the pandemic hurt iPhone sales because consumers couldn’t get into stores. But it benefitted Mac sales because of work- and school-from-home orders. Indeed, the Mac set a Q2 revenues record, while iPad saw its biggest quarterly revenues spike in 8 years.

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Comments (11)

11 responses to “Apple Delivers Blockbuster Quarter Despite Slow iPhone Sales”

  1. cavalier_eternal

    Revenue was 59 billion not 46 which would make iPhone 40 something percent not 57. also it’s apple’s q3 not q2

  2. DBSync

    Considering their iPhone revenue has been steady every other part of their business has been growing. iPhone used to be 60+% of their business. Now it is low 40's, and they are still posting record quarters.

  3. bluvg

    Kudos to Apple, those look like pretty stellar results.

    (Now I've said something nice about Apple this year.)

  4. waethorn

    I wonder if they're going to lump Mac PC's into another category after they switch everything to ARM, considering that they'll run the same apps.

    I'm also waiting to see if they make ARM Macbooks fanless. If they are, that's a game-changer for the PC industry. Right now, the only fanless products exist as terribly-performing Intel systems running Windows...and Chromebooks. If Apple makes their proper computer platform, i.e. macOS, into something that runs as well as, if not better than an iPad, with passive cooling only, I'd be willing to give it a second look. I do think that buying any Intel Mac right now is a mistake though. Intel Mac's, specifically in the Macbook range, have terrible reliability issues with them mainly because Apple is a bit hard-headed about trying to shoehorn Intel chips into their restrictive computer designs and don't engineer the systems properly. Once they start building proper computers with their own ARM chips, it'll be apparent as to whether or not they can correctly engineer their laptop designs for their own silicon. If they can't do it right and we see the same kinds of reliability issues, the company's computer business is dead.

    • jedwards87

      In reply to Waethorn:

      The iPad Pro's are fanless and those things are crazy powerful so here is to hoping the ARM Macs will be too.

      • waethorn

        In reply to jedwards87:

        Not having used one, I don't even know what the heat production is like on one, although I read online that they do get pretty hot and Apple tends to underclock chips (at least in the iPhone... again I don't know about the iPads) to get them under a specific thermal threshold. Macbook chassis' are already a Big-Chunk-of-Aluminum, so they have some options to play with that design to act as a heat spreader.

  5. naddy69

    Despite Slow iPhone sales?

    26.4 billion dollars equals around 30 million iPhones sold. In a single quarter.

    Lots of companies wish they sold 30 million of anything in a quarter.

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