Apple announced revenues of $59.7 billion today for the second quarter ending June 27, representing an increase of 11% year over year as the company benefitted from “double-digit growth” in both products and services.
The return equated to a record quarter for the iPhone-maker, which also saw revenue generated by “services” such as the App, Apple Music and iCloud, topping $13.2 billion during the period. Apple executives reported that its revenue for services was growing at a rate of 15% year over year during the period, despite the economic slowdown caused by the Covid-19 pandemic negatively impacting its advertising services.
Apple executives also claimed that revenues generated by services during the quarter also meant that it had met its earlier goal for this division six months ahead of schedule.
Luca Maestri, Apple’s CFO, told investors, “We like the services business because it is a recurring type of revenue and the margins are accreditive.”
In total, there are now 550 million subscribers to the host of paid-for services offered by the company based in Cupertino, Calif., which also reported that revenues generated by iPhone sales grew 2% year over year during the quarter to hit $26.4 billion.
This increase came after multiple quarters of decline, with Apple CEO Tim Cook telling financial analysts the performance was “better than expected” due to lockdown measures easing in May and June and continued demand for the iPhone SE range. In a prepared statement, Cook also highlighted his company’s ongoing corporate social responsibility efforts, such as its $100 million Racial Equity and Justice scheme and carbon neutrality ambitions.
“In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation,” it read.
Despite the positive performance, Apple again declined to offer financial guidance for the coming quarter given the ongoing economic uncertainty posed by the Covid-19 pandemic.
Apple executives also pointed out how shelter-at-home orders helped buoy sales of its more traditional offerings such as Mac and its iPad range.
“These products are incredibly relevant, especially given the current situation,” said Cook. “So we expect the performance that we’ve seen for Mac in the June quarter to continue.”
Apple recently embarked on a marketing campaign to promote its Apple at Work product suite spearheaded by a nearly seven-minute video ad that pointed to several overlooked features built into every iPhone and iPad, such as the Measure app or ability to scan text via the Notes app.