Apple Posts Another Record Quarter

Posted on January 28, 2020 by Paul Thurrott in Uncategorized with 15 Comments

Apple reported today that it earned $22.2 billion on record revenues of $91.8 billion in the quarter ending December 31, exceeding estimates in dramatic fashion.

“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,” Apple CEO Tim Cook said in a prepared statement. “During the holiday quarter, our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement, and loyalty of our customers, and a great driver of our growth across the board.”

Apple reported that iPhone revenues grew 7.10 percent to $55.9 billion in the quarter, and the product line is still responsible for over 60 percent of the company’s total revenues. This marks the first time in one year iPhone sales have risen year-over-year.

Wearables and Services also grew in the quarter. Wearables revenues jumped 27 percent to $10 billion in the quarter, while Services grew 14.5 percent to $12.7 billion.

Revenues from Mac and iPad, meanwhile, both fell in the quarter. The Mac saw a 13 percent decline to $7.2 billion, while iPad revenues fell 12.6 percent to $5.9 billion.

CNBC reports that Apple’s stock jumped 3 percent in after-hours trading.

Join the discussion!

BECOME A THURROTT MEMBER:

Don't have a login but want to join the conversation? Become a Thurrott Premium or Basic User to participate

Register
Comments (16)

16 responses to “Apple Posts Another Record Quarter”

  1. jedwards87

    An incredible quarter from an even more incredible company. Way to go Apple. Oh course Paul is probably in a corner somewhere crying...lol.

  2. lvthunder

    Wow that's a lot of money. Good for them. I hope this trend continues for them and the economy as a whole.


    Even though Mac sales were down 13% to $7.2 billion that's still an incredible business.

  3. reefer

    I guess consumers doesnt see iPad the way Tim Cook wants them to, as a fullworthy computer replacement, a 12.6 % drop is a pretty steep decline.

    • GT Tecolotecreek

      In reply to reefer:

      Most importantly, nearly half of Mac and iPod sales are to buyers new to the platform.

      If Apple had released new hardware for sale in the quarter then it is likely you would not have seen the YOY decrease. The new Mac Pro and MacBook Pro aren't exactly consumer end user products.

      • Stooks

        In reply to GT_Tecolotecreek:

        Once the lower end 13inch Macbooks get the new keyboard update (maybe 14inch screen?) there will be an uptic in Mac sales. I completely hate my 2017 15inch for multiple reasons (USB-C only, lame touch bar, no mag safe) but the keyboard is the major reason that it sits on my desk and work and collects dust while I use my Lenovo T580 all the time now.

      • Stooks

        In reply to Jeffsters:

        Lol no doubt, just doomed. Apple is transitioning pretty well so far.


        They are milking the Mac market and it slides into oblivion. At some point the profit margins on that declining market will not be enough and Apple will have their iOS powered laptops ready to go. Basically an iPad with mouse support that many have wanted. No more Intel to deal with, everything on one base OS (computer, TV, phones, tablets, watch...etc) all being fed by their growing services market that for the most part only works in their devices.

        • Jeffsters

          In reply to Stooks:

          Everything I know tells me they are not looking at the Mac to fall into "oblivion". That said the AXX chips are performing REALLY well and there is no reason to think that Apple wouldn't one day transition to those as the CPU but regardless there are use cases that require multiple overlapping windows, mouse support that you mentioned, etc. They've managed that quite well in the past. I still find iOS/iPad OS a Bear when it comes to content creation and file management to name a few. But don't even think of using my Mac to watch a movie, read a book, or the browse the news.

    • Saarek

      In reply to reefer:

      Part of the problem they've had with the iPads is that they just keep going. Most people buy an iPad for email, photographs, a bit of web browsing, etc.


      In that regard there is nothing that a 2020 iPad can do that a 2016 iPad can't.

      • Jeffsters

        In reply to Saarek:

        Exactly! People keep applying the 12-18 month notebook refresh cycle to iPad and that’s just not the case. I have an original iPad Air on a nice stand in my kitchen as a Siri and quick search device that has an always on time and weather app displayed. It keeps on going! Considering what I use my iPads for faster CPU and better screens are nice but the internet isn’t any faster and it’s things like that no upgrade can solve for outside of 5G. Then again once you get past they hype maybe not even that!

  4. RobertJasiek

    iPhone:

    • It would have a great front design if we ignored notch and ratio.
    • Notch: apparently the iPhone buyers tolerate it but notch-haters never will.
    • Ratio 2.17:1: apparently current flagship smartphone buyers tolerate it but others never will accept such a tall display.
    • No headphone jack: apparently the iPhone buyers tolerate it but others do not as long as their wired headphones are great and wireless ones are less reliable.
    • Fast CPU.
    • Expensive (considering that one can get a reasonable smartphone for €150).
    • Many apps but restricted scope of functionality of the set of all apps and iOS.
    • 5 years updates: either one tolerates it as enough or one does not.


    In conclusion, the iPhone has some great features but at the same time requires its user to tolerate major aspects. Apparently, there are enough consumers tolerating them for great Apple income.

    iPad:

    • Ratio ca. 4:3.
    • Reduced reflectance.
    • Acceptable battery life per charge.
    • Very hand-holdable.
    • See above for app functionality and updates. However, much more than a smartphone, a tablet must offer productivity functionality and lasting value for creative users.


    For other operating systems, still is no tablet competes with the iPad's aforementioned hardware aspects. In comparison to iPhones, it is surprising that iPad sales (or revenue) decline because there is much less to be tolerated. In my opinion, these are the reasons:

    • Existing iPads are good enough with respect to aforementioned hardware aspects and need not be replaced regularly.
    • Productivity-wise, Windows tablets have to offer much more for everybody not tolerating the restrictions of app functionality and iPadOS.


    Rather than the relative decline of iPad sales, it is embarrassing that Windows and Android tablets still do not compete with iPads for aforementioned hardware aspects. Hence, I am much less surprised about good iPad revenue than about good iPhone revenue. I simply do not understand why so many consumers tolerate so much.

    • RobertJasiek

      In reply to RobertJasiek:

      How about discussion? (Down)votes tell nothing. Whenever I criticise aspects of iPhones, ca. 4 downvotes are the norm. Without discussion, we never learn whether they come from Apple shareholders, fanboys or what reasons might refute some of my points. (However, even the best reasons can never be good enough to convince me of the notch or tall displays.)

      • nerdile

        In reply to RobertJasiek:

        I once had a pastor who joked that when you hear "In conclusion" in a sermon, it means absolutely nothing. (Because they're going to continue for quite a while.)


        I think people are downvoting your comment because it isn't directly related to the topic at hand. They may have read the article about Apple's earnings and wanted to hear others' thoughts on Apple's earnings. Instead, they found a tangential rant about iPhones.


        If you don't like iPhones, don't get an iPhone. If you don't understand why other people buy iPhones, maybe ask them and listen instead of complaining at them.

  5. nbplopes

    It will be interesting to see how will Apple address its weaknesses. For now TC has been playing by the book, double down on its successes around the iPhone, including Apple Watch. He basically raised the costs if acquisition to the customer.


    This added to the fact that the competition has been failing in addressing theirs where they should be really strong ... in particular ... interop with Windows, and Chromebooks well ... so buying an iPhone or any Android or iPhone its mostly just the same.


    The decreasing Mac, Macbook sales and iPad sales is expected. Mac Pro is out of reach, Mac design hasn't been updated for a decade or so (only CPU and GPUs), MacBook Pro design was a blunder, and iPad Pro ... well I if I want one need to buy a 2018 model. We need not to gorget, that iPad OS came last year with a major redesign for iPads.


    So people that might consider for the first time Mac's are a bit stuck and who might consider an iPad Pro, the same. More so who would think of combining both ... like me.


    Meanwhile its seams both will be only updated in the third to fourth quarter this year :(. MacBook Pro's, I suspect people are also waiting to be updated with the new keyboard ...


    Anyway, if they do as usual but also do a good job in the Mac (updated design) and update the iPad Pro ... this year might be even more incredible.


    Cheers.



Leave a Reply