iPhone, AirPods sales fuel Apple revenue surge

Apple’s first-quarter results for the fiscal year 2020 hushed all skepticism over its sales growth reporting an increase of 9% or a quarterly revenue of $91.8 billion. The company credits the latest iPhone models and AirPods which were hot items during the holidays.

“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,” Tim Cook, Apple’s CEO, said in a media advisory.

Apple’s shares are also up 19% with a per diluted quarterly share of $4.99 with international sales accounted for 61% of the quarter’s revenue.

Apple’s hardware segment posted mixed results but smartphone and wearables have, so far, performed well driving the sales growth.

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Apple released three high-end iPhone models last year — iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max — with prices ranging from $699 to $1,099 while a pair of AirPods costs around $159. The company also attributes what it dubbed as “all-time record” revenue to services especially for Apple TV which was launched in November last year amid favorable reception. The company closed 2019 with the introduction of modular desktop Mac Pro marketed as a workhorse for professionals.

“During the holiday quarter, our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board.”

– Tim Cook, CEO, Apple

“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. “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.”

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

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