Apple’s Revenue Better Than Expected; Shares Rise
Apple’s shares have been rising after the company reports better than expected revenue of $91.8 billion.
Apple had recently reported the results of the first quarter of fiscal year 2020. As per reports, Apple’s revenue totaled around $91.8 billion. This is far ahead of its expectations of $88.43 billion. Also, Apple’s per-share profit of $4.99 was more than the market-anticipated figure of $4.54 per share.
Apple’s company shares have traded at all-time highs in the past months. This matched the northward march of other tech companies’ equity. Also, Apple’s stock is up by several points.
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Some time back, Apple had told investors that it had expected a revenue somewhere between $85.5 to $89.5 billion, in the quarter, with gross margin between 37.5 percent and 38.5 percent. Apple’s Q1 F2020 gross margin result was at 38.4 percent. Apple’s revenue has been impressive.
Let’s have a quick look at Apple’s performance in the quarter.
- Product revenue: $79.1 billion
- Services revenue: $12.7 billion
- Net income: $22.2 billion
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Here are some of the lucrative hardware businesses of Apple:
- iPhone: $56.0 billion
- Mac: $7.2 billion
- iPad: $6 billion
- Wearables, Home, and Accessories: $10 billion
All these added the earnings per share lead to $5.04 (basic) and $4.99 (diluted).
Apple had also stressed on its smaller device and home category. CEO Tim Cook has said that Apple had posted all-time records for Services and Wearables. In recent years, Apple has worked to lessen its revenue dependence solely on the iPhone. This certainly holds true, as Apple had recorded a year-over-year decline in Mac revenue.
In 2019, Apple had wrapped up with cash, equivalents, and different types of marketable securities that are worth $207 billion, at a time when its debt load seemed around $118 billion.
In the near future, Apple anticipates Q2 F2020 revenue, to be somewhere ‘between $63 billion and $67 billion. The gross margin is likely to be in the same range as the sequentially proceeding quarter.
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