Apple held a press conference for analysts following its announcement of its financial results for its fiscal 2020 first quarter that ended Dec. 28, 2019. CEO Tim Cook and Chief Financial Officer Luca Maestri field questions and here are some highlights from the answers and comments.
Tim Cook:
The iPhone 11 was the top selling model of Apple’s smartphone every week during the quarter. In China, the iPhone saw double digit growth.
Demand for AirPods continues to be “phenomenal.”
Apple Watch sales set an all-time record sales during the quarter.
The Mac and iPad saw “strong performance” despite revenue from the former dipping 3% and the latter 11% year-over-year. However, the iPad saw strong growth in many key emerging markets. Both it and the Mac are attracting “lots” of new customer in China.
The new 16-inch MacBook Pro, new Mac Pro, and XDR Display Pro have gotten a “strong response” from pro customers.
Retail and online stores set all all-time record in revenue.
Apple News + now has over 100 million active users.
Revenues and transactions with Apple Pay more than doubled year-over-year.
Apple TV+ is off to a “rousing start” (though Cook talked of the awards given to “The Morning Show,” but didn’t mention any viewership numbers) However, a report by third-party analytics firm Ampere Analysis estimates that TV+ has amassed more than 33 million subscribers in its first three months of availability.
Apple has closed one retail store in China due to the coronavirus, while others seen reduced hours.
Luca Maestri
Apple’s revenue up 9% in spite of the $1 billion “headwind” from foreign exchange.
The iPhone set all-time revenue records in the U.S., Mexico, UK, and other regions. The installed base of the smartphone is at an all-time high. Eighty-four percent of of business buyers plans to purchase iPhones.
Wearables revenue hit $10 billion, up 37%. It set records in nearly every segment despite some supply challenges.
Apple services set all-time records across segments. Apple Music and iCloud both set quarterly records.
There are over 480 million paid subscriptions across the company’s services. That’s up 120 million year-over-year, and Apple is predicting 600 million by the end of the fiscal year. Apple Music and iCloud set all-time revenue records.
The year-over-year comparisons for the Mac and iPad were difficult year-over-year due to product launches (or lack thereof). For example, the holiday quality quarter saw the new MacBook Air and Mac mini launched. As well received as they may be, the 16-inch MacBook Pro, new Mac Pro, and XDR Display Pro aren’t aimed at a smaller audience.
Around half of customers buying Macs and iPads were new to the platforms. (Has there ever been a quarter in which, per Apple, this wasn’t the case? — Dennis)
