Apple reports quarterly revenue growth despite COVID-19 crisis, helped by services and wearables

AirPods and Apple Watch sales were strong, while iPhone sales took a hit

Highlights
  • Apple announced Q2 revenue growth of 1 percent
  • iPhone sales were down, but AirPods and Apple Watch sales were strong
  • Apple also got help from its services like Apple TV+ and Apple Music

Apple has reported a quarterly revenue growth of 1 percent despite the COVID-19 crisis. The company announced a revenue of $58.3 billion, which is a marginal improvement over the $58 billion revenue reported in the same quarter last year. Chief Executive Officer Tim Cook told Bloomberg that Apple saw a “pickup” in the second half of April after a “depressed” late March and early April period. 

iPhone revenue was $28.96 billion, which was down 7 percent, but still managed to beat analysts’ expectations. While iPhone sales understandably took a hit in Q2, Apple’s services and wearables are what helped the company grow during the lockdown. Services business, which includes Apple TV+, Apple Music and Apple Arcade, climbed 17 percent to $13.35 billion, while AirPods and Apple Watch helped Apple’s wearables and accessories business grow 23 percent to $6.28 billion.

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables,” said Tim Cook, Apple’s CEO. “In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund.”

Tim Cook expects to see iPhone and wearables year-over-year revenue performance to be worse in the June quarter compared to the March quarter, while he expects iPad and Mac saes to improve. Meanwhile, digital content services such as Apple TV+ and Apple Music will continue to remain strong.

Things are likely to start picking up in China with Apple retail stores now open. The company also plans to open its stores in Austria and Australia in the next two weeks. Apple says it will take retail decisions “city by city, county by county, depending on the circumstances in that particular place.”