Apple noticed progress for the primary three months of the 12 months, as falling machine gross sales in China have been offset by demand for its streaming services because of the coronavirus lockdown.
Sales climbed to $58.3bn (£46.2bn), up from $58bn in the identical interval in 2019 and beating expectations of $54.5bn.
Apple boss Tim Cook stated the agency noticed a “record for streaming” and “phenomenal” progress within the on-line retailer.
He added that “China is headed in the right direction”.
Despite the coronavirus lockdown hurting iPhone provide as a result of Chinese factories closing, and a drop in demand for gadgets in China – a serious marketplace for Apple – throughout February and March, Mr Cook instructed traders in an earnings name on Thursday: “I don’t think I can remember a quarter where I’ve been prouder of Apple.”
Apple stated iPhone gross sales for the quarter fell 7.2% to $28.9bn, in comparison with $31bn within the earlier 12 months.
However, its wearables, house and equipment division – which produces the Apple Watch and AirPods – rose 22.5% to £6.3bn, whereas services – similar to subscriptions to Apple Music and Apple TV – jumped 16.6% to $13.3bn like-for-like.
Although enterprise in China has not totally rebounded, Apple stated all of its shops within the nation had reopened by mid-March and gross sales have been bettering.
Net revenue for the six months ending 28 March 2020 rose 6.2% to $33.5bn, up from $25.9bn in the identical interval in 2019.
Mr Cook stated Apple was in a powerful place and that its provide chain was “robust” and “back up and running at full-throttle at the end of March”.
“While we can’t say for certain how many chapters are in this book, we can be assured that the ending will be a good one,” he instructed traders.
Apple stated it will not be issuing forecasts for the next quarter, given the continued uncertainties of the lockdown, which has seen its gross sales transfer on-line or to curb-side pick-ups.
Research agency eMarketer’s principal analyst Yoram Wurmser stated Apple’s efficiency was “pretty solid”.
“Growth of 1% in this environment is impressive, particularly given some of the extent of Apple’s exposure to the earlier lockdowns in Asia,” stated Mr Wurmser.
“The biggest bright spot for Apple was services, which grew 17% year-over-year. As people spent more time on their phones while locked away at home, they clearly were spending more money in the App Store and on some of the subscription services offered by Apple, including Apple Music and Arcade.”
According to Sophie Lund-Yates, fairness analyst at Hargreaves Lansdown, the rise in demand for wearables and services is an encouraging one for Apple, given current lacklustre iPhone gross sales progress.
“Despite plenty of talk around services, Apple is still very much a hardware business. And even before coronavirus, conditions weren’t perfect,” she stated.
Ms Lund-Yates added that Apple’s resolution to cost the brand new iPhone SE at half the price of a few of Apple’s most up-to-date fashions is an effective solution to persuade prospects to improve throughout the lockdown.