Apple to start online sales in India in Q3 this year

Darnell Taylor
January 29, 2020

"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", said Tim Cook, Apple's CEO.

Apple posted $91.8 billion (roughly Rs. 6,54,000 crores) in revenue for the quarter ended December 28, compared with analyst estimates of $88.5 billion, according to IBES data from Refinitiv. Not part of the earnings release and discussion, but perhaps of greatest relevance to marketers, is Apple's US browser market share.

What this means is that all of the things that Apple did to improve the iPhone in 2019 such as increasing the battery life, taking photography to another level using computational imaging (Deep Fusion), and improving the new lines' protection from water and drops, all touched a chord with consumers.

In the most recent quarter, iPhone sales climbed nearly 8%, while sales of wearables such as watches and AirPods jumped 44%, with demand so strong it created shortages.

Apple has stopped reporting unit sales for the iPhone, which has been the main cash-generator for the company in recent years, but sales revenue for its smartphone sales was up almost eight percent in the quarter at $55.9 billion. Meanwhile, after two consecutive quarters of growth, Apple saw iPad revenue decline by 11.2% year-over-year to $5.98 billion.

Cook said in a prepared statement that the company's "active installed base of devices" is now more than 1.5 billion.

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Apple said business in China also returned to growth during the quarter after a recent retreat amid US-China trade tensions, racking up $13.6 billion in sales versus $13.2 billion a year earlier. This group includes the App Store, Apple Music, Apple Arcade, Apple TV+, Apple News+, Apple Pay, iCloud and Apple Care.

"One note of caution in an otherwise strong report was that Services, which included Apple TV+, grew slightly below expectations", said EMarketer principal analyst Yoram Wurmser. According to estimates by Ampere Analysis, the "vast majority" of Apple TV Plus's roughly 33.6 million U.S. users as of the end of the year were not paying subscribers.

Apple, however, had a notably weak first quarter of fiscal year 2019, when iPhone sales cratered by 15%. Cook said Apple does not have an estimate for when it will be able to fulfil demand for AirPods.

Earnings per share came in at $4.99, higher than $4.55 anticipated, for the tech giant's first quarter of fiscal 2020 and up 19% year-on-year.

"We're working on both of those very hard", Cook told Reuters. And the company's forecast revenue midrange for the current quarter was above the average analyst expectation.

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