Apple boosted by streaming services despite lockdown

A taxi runs through the Appl headquarters in New York

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Apple experienced growth for the first three months of the year, as declining device sales in China were offset by an increase in sales of streaming services due to the coronavirus blockade.

Sales rose to $ 58.3 billion (£ 46.2 billion), up from $ 58 billion in the same period of 2019 and exceeding expectations of $ 54.5 billion.

Apple chief Tim Cook said the company had a “streaming record” and “phenomenal” growth in the online store.

He added that “China is heading in the right direction”.

Although the coronavirus blockade damaged the supply and demand for iPhone devices in China – an important market for Apple – in February and March, Cook said to investors in a Thursday profit call: “I don’t think I remember a quarter in which I was most proud of Apple. “

Apple said iPhone sales in the quarter fell 7.2% to $ 28.9 billion, compared to $ 31 billion the previous year.

However, its wearable, home and accessories division – which produces the Apple Watch – rose 22.5% to £ 6.3 billion, while services – such as subscriptions to Apple Music and Apple TV – went up 16 , 6% to $ 13.3 billion similar.

Net income for the six months ended March 28, 2020 increased 6.2% to $ 33.5 billion, up from $ 25.9 billion in the same period in 2019.

Cook said Apple is in a strong position and that its supply chain was “robust” and that “it worked at full speed at the end of March”.

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Tim Cook said the blockade in China did not harm Apple’s global supply chain

“Although we cannot say for sure how many chapters there are in this book, we can be sure that the ending will be positive,” he told investors.

Apple said it would not issue forecasts for the following quarter, given the ongoing uncertainties of the blockade.

Yoram Wurmser, principal analyst for the research company eMarketer, said that Apple’s performance is “quite solid”.

“The 1% growth in this environment is impressive, particularly given the portion of Apple’s exposure to previous blockades in Asia,” said Wurmser.

“The biggest bright spot for Apple were the services, which grew 17% year-on-year. As people spent more time on their phones while stuck at home, they were clearly spending more money in the App Store and some service subscriptions offered by Apple, including Apple Music and Arcade. “

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