Apple hits all-time revenue record

Apple has just released its earnings report for the latest quarter in their business cycle and the numbers are an interesting read. They have reported a record $91.8 billion in quarterly revenue. As per usual, iPhone sales made up the majority of that figure, coming in at $55.9 billion in revenue. The iPad brought in a further $12.7 billion.

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It seems the new range of iPhone 11 smartphones is what pushed the revenue figure up significantly, where the iPhone XR, XS and XS Max fell a bit flat in the market the year prior. The improvements we saw in the iPhone 11 like much better battery life, much improved cameras and slicker performance saw more people depart with the hard earned cash than ever before.

Apple don’t disclose how many iPhones they’ve sold of each variant, but it is safe to assume that the iPhone 11 sold extremely well even though the 11 Pro and 11 Pro Max were the superior devices. CEO Tim Cook cited “strong demand” for the iPhone 11 and 11 Pro as the biggest reason for this earnings win.

Other than the killing they made from iPhones, the rest of their hardware story is a mixed bag. Apple combines its Wearables and Home segment, which increased in sales by 37 percent year-on-year, probably fuelled by better Apple Watch sales. Mac and iPad sales decreased slightly due to lower than expected sales during the holiday season.

The Cupertino firm is trying to make their business less reliant on sales of the iPhone and want to push revenue through services as much as possible. Their services business also hit an all-time high, pulling in a total of $12.7 billion in revenue.

The looming question is whether Apple TV+ will become a major revenue driver. It wasn’t specifically mentioned in the results as it only launched late last year and most subscribers would have received a year’s subscription for free with the purchase of a new iPhone, iPad, Apple TV, iPod Touch or Mac. For other customers it costs $4.99 per month, and will for everyone towards the end of 2020. They will want to keep as many of their free subscribers on after their year is up and that could shift the needle on Apple TV+ subscribers.