Apple boosted by streaming services despite lockdown

1 May Kathmandu : Apple noticed development for the primary three months of the yr, as falling system gross sales in China have been off-set by an increase in gross sales of streaming services as a result of coronavirus lockdown.

Sales climbed to $58.3bn (£46.2bn), up from $58bn in the identical interval in 2019 and beating expectations of $54.5bn. Apple boss Tim Cook mentioned the agency noticed a “record for streaming” and “phenomenal” development within the on-line retailer.

He added that “China is headed in the right direction”.

Despite the coronavirus lockdown hurting iPhone provide and demand for gadgets in China – a serious marketplace for Apple – throughout February and March, Mr Cook advised buyers in an earnings name on Thursday: “I don’t think I can remember a quarter where I’ve been prouder of Apple.”

Apple mentioned iPhone gross sales for the quarter fell 7.2% to $28.9bn, in comparison with $31bn within the earlier yr. However, its wearables, residence and equipment division – which produces the Apple Watch – rose 22.5% to £6.3bn, whereas services – comparable to subscriptions to Apple Music and Apple TV – jumped 16.6% to $13.3bn like-for-like.

Net revenue for the six months ending 28 March 2020 rose 6.2% to $33.5bn, up from $25.9bn in the identical interval in 2019.

Mr Cook mentioned Apple was in a powerful place and that its provide chain was “robust” and was “back up and running at full-throttle at the end of March”. Tim Cook mentioned the lockdown in China had not broken Apple’s world provide chain

“While we can’t say for certain how many chapters are in this book, we can be assured that the ending will be a good one,” he advised buyers.

Apple mentioned it might not be issuing forecasts for the next quarter, given the continued uncertainties of the lockdown. Research agency eMarketer’s principal analyst Yoram Wurmser mentioned Apple’s efficiency was “pretty solid”.

“Growth of 1% in this environment is impressive, particularly given some of the extent of Apple’s exposure to the earlier lockdowns in Asia,” mentioned Mr Wurmser.

“The biggest bright spot for Apple was services, which grew 17% year-over-year. As people spent more time on their phones while locked away at home, they clearly were spending more money in the App Store and on some of the subscription services offered by Apple, including Apple Music and Arcade.”