In the first quarter of Apple, we sing loudly ” the money is chic “. La Pomme once again sat on a mountain of greenbacks, even higher than the other quarters and for good reason: it is about counting the billions earned during the holiday season! And this first fiscal quarter 2020 is no exception to the sacrosanct rule.
The first fiscal quarter is traditionally the most important for Apple, the manufacturer concentrates all its efforts during the last three months of the year. It was during this period that sales were strongest, driven by the big news of the year: iPhone 11 and 11 Pro, Apple Watch Series 5, AirPods Pro, but also MacBook Pro 16 inch and Mac Pro. Without forgetting the new services, Apple TV + and Apple Arcade.
Suffice to say that Apple has not been idle, bank cards have heated up badly. And this is reflected in the quarter’s results.
In short
In billions of dollars.
| Turnover | 91.819 | 84,31 | + 8.91% |
| profit | 22.236 | 19.965 | + 11.37% |
| iPhone | 55.957 | 51.982 | + 7.65% |
| iPad | 5,977 | 6,729 | -11.18% |
| Mac | 7,160 | 7.416 | -3.45% |
| Services | 12.715 | 10.875 | + 16.92% |
| Others products | 10,010 | 7,308 | +36.97% |
Turnover and activity
During its first fiscal quarter, Apple sold $ 91.819 billion in products and services (almost + 9% compared to the same quarter of the previous year); the manufacturer having forecast a turnover between 85.5 and 89.5 billion dollars for this period, we can say that the quarter is successful. It’s even the best fourth quarter in terms of turnover in the history of Apple, says Tim Cook! Yeah, downright.
Demand for the iPhone, notably the iPhone 11 and the 11 Pro, has given wings to the manufacturer’s performance, resulting in profits of $ 22.2 billion (+ 11.37%). Apple has 1.5 billion active devices, ” a powerful testimony to the satisfaction, commitment and loyalty of our customers “.
Apple has not forgotten its distinguished shareholders, while the annual meeting is on the horizon : the builder bought back $ 20 billion in shares during the quarter, and paid $ 3.5 billion in dividends. The cash flow is 30.5 billion.
Apple has in its hands a war treasure which amounts to 207 billion dollars; excluding debt, net cash is 99 billion.
IPhone Sales
Undeniably, it was the new iPhones that pulled Apple’s revenues up during the first fiscal quarter. Apple sold nearly $ 56 billion in all models, a figure up 7.6% compared to the same quarter 2019. The iPhone 11 and 11 Pro made a strong impression, a performance compared to that recorded by iPhone XS / XS Max and XR in Q1 2019 (almost -15%). The first quarter breaks the negative circle that the iPhone has suffered for a year.
IPad sales
The lack of new products at the end of last year was hard hit in Q1 2020. While the category has recorded quarter-over-quarter increases for a year, bim, the trend has broken with a decline in turnover. business in this category by more than 11%, to nearly $ 6 billion. Rumor has it that the manufacturer has new iPad Pro in its pipes for the spring…
Mac Sales
Like the iPad, but not quite to the same extent, the Mac suffered a 3.45% decline in sales to $ 7.1 billion. It is possible that the 16-inch MacBook Pro allowed Apple to limit losses, while the Mac Pro, available very late at the end of the year, had a limited impact (and sales were certainly low due to the target clientele. ). We are expecting news from several mainstream Macs, such as the iMac, the MacBook Air, and even “small” MacBook Pro (soon a 14 inch?).
Services
Services, Tim Cook’s darling category, posted very solid growth of almost 17%: Apple TV +, Apple Arcade, Apple News +, Apple Card, Apple Pay, iCloud and others brought in $ 12.7 billion. Services now weigh almost the same weight as Macs and iPads …
Nevertheless, it is difficult not to note that the growth of services tends to subside, all things considered, compared to Q1 2019 (+ 19%) and Q4 2019 (+ 18%). And we are now far from the surges of 2018 (+ 32.6%). Tim Cook has a word for Apple TV +, which is ” not a hobby, it’s a very serious business “.
Apple’s CEO does not go as far as to give figures for the streaming service, but he speaks of a ” resounding success “, A start” very strong, both for people who get it for free and those who pay because they haven’t bought a new device “.
Apple measures the success of Apple TV + by the number of subscribers, which the manufacturer will not communicate. ” We started with a very aggressive price, plus our bundle [un an gratuit pour l’achat d’un nouvel appareil NDR]. (…) If we do things right, there will be numbers that will be celebrated, and this is what we see [en interne] “.
Others products
Still in great shape, the tote category of other products has obviously benefited from the appeal of the Apple Watch Series 5 and above all, the AirPods. It collects a turnover of 10 billion dollars, almost 37% better than in Q1 2019.
Tim Cook assured Reuters that Apple was not producing enough AirPods and Apple Watch Series 3 to meet demand. The Series 3 and its floor price from 229 €, and stocks are still low for these two products.
Sales in the wearables (headphones, watches) increased by 44%, a sign of the monumental cardboard of this range of products. Even more impressive: 75% of Apple Watch buyers are new customers.
For the next quarter
For the second fiscal quarter 2020, which covers the months of January, February and March, Apple expects to garner between 63 and 67 billion dollars in revenue. Be careful however, the Chinese coronavirus could have an impact on the quarter’s results, warns Tim Cook: ” There are a lot of uncertainties, it’s a very fluid situation “
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