Apple’s Revenue Better Than Expected; Shares Rise

Apple had recently reported the results of the first quarter of fiscal year 2020. As per reports, Apple’s revenue totaled around $91.8 billion. This is far ahead of its expectations of $88.43 billion. Also, Apple’s per-share profit of $4.99 was more than the market-anticipated figure of $4.54 per share.

Apple’s company shares have traded at all-time highs in the past months. This matched the northward march of other tech companies’ equity. Also, Apple’s stock is up by several points. 

Some time back, Apple had told investors that it had expected a revenue somewhere between $85.5 to $89.5 billion, in the quarter, with gross margin between 37.5 percent and 38.5 percent. Apple’s Q1 F2020 gross margin result was at 38.4 percent. Apple’s revenue has been impressive.

Let’s have a quick look at Apple’s performance in the quarter.

• Product revenue: $79.1 billion
• Services revenue: $12.7 billion
• Net income: $22.2 billion

Here are some of the lucrative hardware businesses of Apple:

• iPhone: $56.0 billion
• Mac: $7.2 billion
• iPad: $6 billion
• Wearables, Home, and Accessories: $10 billion

All these added the earnings per share lead to $5.04 (basic) and $4.99 (diluted).

Apple had also stressed on its smaller device and home category. CEO Tim Cook has said that Apple had posted all-time records for Services and Wearables. In recent years, Apple has worked to lessen its revenue dependence solely on the iPhone. This certainly holds true, as Apple had recorded a year-over-year decline in Mac revenue.

In 2019, Apple had wrapped up with cash, equivalents, and different types of marketable securities that are worth $207 billion, at a time when its debt load seemed around $118 billion. 

In the near future, Apple anticipates Q2 F2020 revenue, to be somewhere ‘between $63 billion and $67 billion. The gross margin is likely to be in the same range as the sequentially proceeding quarter.