Apple’s services set a new revenue record and help weather the iPhone’s downturn


Apple has presented the second quarter of fiscal year 2020 financial results to prove that it is a company resistant to the new coronavirus pandemic, and it is not thanks to the iPhone. For the first three months of the year, the company posted revenue of $58.313 billion, up 1 percent from the same period last year, while quarterly profit was $11.249 billion, down 3 percent year-over-year.

Apple’s Services division has been in business for some time, but in the last quarter it broke all records by posting $13.348 billion in cash, up 16.5% from a year ago. This category includes products such as Apple TV+, Apple Arcade, App Store, Apple Pay, iCloud, Apple News, iTunes and Apple Music, among others. Like other companies such as Google and Microsoft, confinement has led to an increase in demand for this type of entertainment service.

Tim Cook


Apple hardware sales fell in all categories except one, Wearables, Home and Accessories (AirPods, Apple Watch…), whose revenues grew 22.5% year-on-year to reach 6.284 billion dollars. The bad news comes from the iPhone business, whose sales revenue fell 6.7% from the same period last year to $28.962 billion. The Mac and iPad also failed to keep up, with year-on-year declines in revenue of 3 percent and 11.5 percent, respectively.

“Despite the unprecedented global impact of COVID-19, we are proud to report that Apple grew during the quarter, driven by an all-time record in Services and a quarterly record in Wearables,” said Tim Cook, Apple’s CEO. “In this challenging environment, our users are relying on Apple products in new ways to stay connected, informed, creative and productive.

Despite the pandemic, Apple has continued to announce hardware, including the new iPad Pro, a revamped MacBook Air and a new edition of the iPhone SE. In addition, Cupertino is working with Google on a system to track the COVID-19’s contacts via Bluetooth on mobile phones.


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