Apple earnings climb on strength of iPhone 11 sales

Apple earnings climb on strength of iPhone 11 sales

January 28, 2020

CEO Tim Cook greets shoppers inside the store.
 (Photo: Robert Deutsch, USA TODAY)

iPhone 11s have been very kind for Apple’s bottom line. 

Driven by “exceptional sales” of its latest premium smartphones, Apple posted record 2020 first quarter revenues of $91.8 billion, up 9% from the same period a year ago. Earnings-per-share registered $4.99, well above Wall Street forecasts of $4.54, as reported by S&P Global Market Intelligence.

The iPhone alone generated nearly $56 billion. 

CEO Tim Cook said that during this recent holiday quarter, Apple’s active installed base of devices has reached more than 1.5 billion.

Apple also reported record revenues in the services (iCloud, Apple Music, App Store, Apple Care, Apple TV+) and wearables sectors (AirPods, Apple Watch), the latter of which Cook referred to as having a “blowup quarter.

By itself Apple’s wearables business has grown to size of a Fortune 150 company, Cook said.

The iPhone 11s went on sale in September, the same month when the company launched the Apple TV+ streaming service. Apple TV+ faces still competition from rivals Netflix, Hulu, Amazon Prime and most recently Disney+ but Cook says it is off to a “rousing start.”

Though it costs $4.99 a month to subscribe to Apple TV+, Apple gave away service for 1 year to consumers who bought pretty much any new device from the company. 

Cook also said the curated Apple News now draws more than 100 million active users.

Apple shares have risen 8% since the beginning of the year, while the Standard & Poor’s 500 index has risen slightly more than 1%. Apple shares closed at $317.69, more than doubling in the last 12 months.

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Contributing AP

Email: [email protected] ; Following @edbaig on Twitter

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