Record

Apple has its most profitable quarter ever thanks to iPhone and Airpods

Wednesday, January 29, 2020 by Snacks
_Apple reviewing its quarterly AirPod sales_

Apple reviewing its quarterly AirPod sales

It's an iRecord plus... Apple just posted its biggest ever quarterly profit, and its first quarterly profit increase in over a year. And iPhone sales rose for the first time in a year, but a star has been born with AirPods. The branches of the Apple tree are growing:

  • Wearables: Sales up 37%, thanks to AirPods Pro and Apple Watch
  • Services: Up 17%, thanks to Apple TV+ and the Apple Card
  • iPhones: Up 8%, iPhone sales (which made up 61% of Apple's revenue) jumped again thanks to fancy new features (like the 3-eyed camera) and cheaper prices for Chinese consumers
  • iPad and Mac: Sales of the only rotting apples fell by 11% and 4%

An Apple a year... Apple shares have more than doubled over the past 365 days. That's right — over the course of 1 year, Apple has added over $725B to its value (that's more than Facebook's entire value). Apple's installed base of hardware devices — iPhones, MacBooks, iPads, etc — grew by 100M over the year to a total of over 1.5B. Plus, Apple is now worth $1.4T, #2 globally to Saudi Arabia’s oil co.

THE TAKEAWAY

It's all about the self-serving ecosystem... Last year, Apple failed to report a record quarterly profit for the first time since the iPhone's 2007 debut. Now, with iPhone sales up again and wearables and services thriving, it's back in record-profit mode. And the success is circular. Apple's diverse products and services tie back to and benefit its core product: the iPhone (which could be 5G capable next year, likely driving another wave of upgrades).

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