Some companies are better able to withstand the onslaught of the global COVID-19 pandemic, with Amazon, for example, seeing its share price reach new highs due to its increasingly essential logistics role.
Apple, as a purveyor of luxury goods, is not as lucky, and their Q2 2020 earnings have reflected this, with their revenue growing only 1% to a still very impressive $58.313 billion.
This growth was mainly supported by the good performance of their service business, which grew 16.5% to $13.348B, up from $11.45B in the same quarter last year.
Another bright point was Apple’s wearables, home, and accessories (mainly Apple Watches and Airpods) which increased 22.5% to $6.284B in revenue, up from $5.129B last year.
Less fortunate was Apple’s iPhone business, which pulled in $28.962B, 7% down from last year’s $31.051B. Mac sales were also down from 5.513B to $5.351B and iPad sales were down from 4.872B to 4.368B.
Despite all the red arrows, Apple still managed operating cash flow of $13.3 billion during the quarter, up $2.2 billion over a year ago, beating analyst expectations of $2.23 earnings per share by delivering $2.55.
Of course for Apple and most other companies, the pain is just beginning, but Luca Maestri, Apple’s CFO said: “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.”