Apple makes record earnings in 2020 in First Quarter, riding high on iPhone, wearables and services


Apple on Tuesday, Jan 28, announced financial results for its fiscal 2020 first quarter ended Dec. 28, 2019. The Company posted quarterly revenue of $91.8 billion, an increase of 9 percent from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $4.99, up 19 percent. Apple’s international sales accounted for 61 percent of the quarter’s revenue.

“We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” said Tim Cook, Apple’s CEO, while presenting the earnings. During the holiday quarter, Apple’s reach of installed devices grew in every geographic segment to reach over 1.5 billion, he said.

Apple
Apple CEO Tim Cook
IANS

“Our very strong business performance drove an all-time net income record of $22.2 billion and generated operating cash flow of $30.5 billion,” said Luca Maestri, Apple’s CFO giving out the figures for the quarter. “We also returned nearly $25 billion to shareholders during the quarter, including $20 billion in share repurchases and $3.5 billion in dividends and equivalents, as we maintain our target of reaching a net cash neutral position over time.”

Guidance for the fiscal 2020 second quarter:

  • revenue between $63.0 billion and $67.0 billion
  • gross margin between 38.0 percent and 39.0 percent
  • operating expenses between $9.6 billion and $9.7 billion
  • other income/(expense) of $250 million
  • tax rate of approximately 16.5 percent

In view of the record earnings, Apple’s board has declared a cash dividend of $0.77 per share of the Company’s common stock which is payable on Feb. 13, 2020 to shareholders of record as of the close of business on Feb. 10, 2020.

Apple revolutionized personal computer segment with the introduction of the Macintosh in 1984 and then led the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide unique Apple devices and also enable people with services including the App Store, Apple Music, Apple Pay and iCloud. Apple currently has more than 100,000 employees.



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