Apple today has officially reported its fiscal Q2 2020 earnings amid the COVID-19 pandemic. We already knew that Apple wouldn’t hit the guidance it originally provided for the quarter, and today’s release provides the official numbers.
How did the COVID-19 outbreak affect Apple’s business during Q2 2020? The company has announced revenue of $58.3 billion and profit of $11.25 billion. This compares to $58 billion in revenue and $11.56 billion profit reported in the same quarter last year.
Apple had already forecast a wider-than-usual revenue range for Q2 due to COVID-19 uncertainty, predicting revenue between $63 billion and $67 billion. In February, however, Apple announced that it would not hit its Q2 earnings range due to the pandemic and the associated supply constraints and economic slowdowns.
Apple CEO Tim Cook had the following to say about Apple’s Q2 2020 performance:
“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,” said Tim Cook, Apple’s CEO. “In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund.”
And CFO Luca Maestri added:
“We are proud of our Apple teams around the world and how resilient our business and financial performance has been during these challenging times,” said Luca Maestri, Apple’s CFO. “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 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.”
Notably, as some analysts expected, Apple did not provide any guidance for Q3 2020. We expect to learn more about this reasoning in the earnings call with investors and analysts.
AAPL earnings by product
As has become customary, Apple does not report unit sales for any of its hardware products. Instead, it reports a breakdown of revenue by product category. Here are those numbers for fiscal Q2 2020:
- $28.96 billion: iPhone
- $13.35 billion: Services
- $5.35 billion: Mac
- $6.28 billion: Wearables, Home, and Accessories
- $4.37 billion: iPad
Apple touts that the $13.3 billion in revenue for its Services business is an all-time high, up from $11.45 billion in the same quarter last year.
AAPL stock is down following the earnings release:
Apple has also announced that it is increasing its dividend and expanding its share repurchase program by $50 billion:
Apple’s board of directors has declared a cash dividend of $0.82 per share of the Company’s common stock, an increase of 6 percent. The dividend is payable on May 14, 2020 to shareholders of record as of the close of business on May 11, 2020. The board of directors has also authorized an increase of $50 billion to the existing share repurchase program.
Stay tuned to 9to5Mac for more coverage from the AAPL earnings call with Tim Cook and Luca Maestri next. You can listen live to the AAPL Q2 2020 earnings call audio streaming at the top of the hour here, or listen back shortly after the call with Apple Podcasts.
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