Apple Q2 2020 brings $58.3 Billion Revenue

Apple released its Q2 2020 financials Thursday, announcing revenue of $58.3 billion and profit of $11.25 billion.

The Company posted quarterly revenue of $58.3 billion, an increase of 1 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.55, up 4 percent. International sales accounted for 62 percent of the quarter’s revenue.

Products revenue was $45 billion, down 3 percent while Service revenue hit an all-time record of $13.3 billion, up 17 percent.

Gross margin remained flat at 38.4 percent

“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.”

For the quarter, iPhone revenue was off 7.2%, from $31 billion in Q2 2019 to $29 billion in Q2 2020. But Services sales were up from $11.5 billion to $13.3 billion in the quarter, while the Wearables segment, which includes the company’s popular AirPods and Apple Watch, was up from $5.1 billion last year to $6.3 billion.

“We are proud of our Apple teams around the world and how resilient our business and financial performance has been during these challenging times,” said Luca Maestri, Apple’s CFO.
“Our active installed base of devices reached an all-time high in all of our geographic segments and all major product categories. We also generated operating cash flow of $13.3 billion during the quarter, up $2.2 billion over a year ago. We are confident in our future and continue to make significant investments in all areas of our business to enrich our customers’ lives and support our long-term plans — including our five-year commitment to contribute $350 billion to the United States economy.”

Looking ahead, due to the current COVID-19 epidemic, Apple understandably declined to offer guidance for Q3, as it usually would.