Last week, Apple announced the results of its first fiscal quarter of 2020, which includes the months of October, November and December 2019. The results were positive and Apple’s revenue witnessed a noticeable increase, which pushed the share price to advance strongly. In this article, we take a more detailed look at the results.

A look at Apple's first quarter 2020 business results

Business results

Apple achieved total revenues of $ 91.8 billion, compared to 84.3 billion for the same quarter, an increase of 8.9%

◉ The products sector achieved revenues of 79.1 billion compared to 73.4 billion, an increase of 7.7%

◉ The services sector achieved revenues of $ 12.7 billion compared to $ 10.87 billion, an increase of 16.9%

◉ Apple's sales increased in all regions, including China, except for one region that witnessed a decline in revenues, which is Japan, and decreased from 6.9 billion to 6.2 billion.

◉ iPhone revenues witnessed an improvement of 7.6%, revenues of watches, headsets, and accessories 36.9% and services revenues 16.9%

◉ Macs revenue decreased 3.5% and iPad revenue decreased 11.2%

How about the next quarter?

The most positive thing in the report is not only the announcement of good business results, but also that Apple expects the improvement to continue in the next quarter; The following is what Apple expects to achieve in the second quarter of 2020 versus what has been achieved in the second quarter of 2019:

Apple expects to achieve revenues of between 63 billion and 67 billion, compared to last year's revenues of 58 billion, i.e. an improvement between 5-9 billion dollars.

◉ Apple expected operating expenses to be between 9.6 billion and 9.7 billion, compared to 9.64 billion last year, meaning no increase in expenses.

The above gives a positive outlook for the company in the second quarter

Does the improvement continue?

The positive things continue, as Apple is expected to announce in March a large number of products, ranging from the iPhone SE-2 to the iPad Pro, and possibly Mac devices and some accessories; All of these products are announced in the current quarter, "Apple's second financial", and its sales results will appear in the business results of the third quarter, "April-June". This means that we can expect continued improvement in sales for Apple, not only in the next 3 months, but for 6 months; And the expansion can be more because the fourth fiscal quarter will announce Apple at the end of the iPhone 12, which is expected to come 5G, which will increase the improvement. This may mean that 2020 will be a positive year for the company, according to the current data, unless there is a problem as an additional impact of the Chinese Corona virus, or if Apple introduces a product with a serious defect that destroys its reputation, or the US government imposes new taxes and customs. Otherwise, the numbers say that 2020 will be very positive for Apple.

Miscellaneous notes:

◉ The gross margin, which is the difference between sales subtracted and the cost of selling, increased, where it was 32 billion to 35.2 billion, a growth of 9.95%, while as we mentioned above, the revenue increase was 8.9%, which means that the difference improved and Apple became more profitable at a lower cost. The same thing appears in net income, as Apple achieved a net 22.23 billion compared to 19.96 billion, or the company's net income increased 11.3%. Conclusion The company is earning more, thanks to the service sector, which has increased revenues of 1.84 billion, with new expenses of only 0.48 billion.

◉ Apple has reduced its current liabilities to 102 billion from 105.7 billion. In contrast, non-current liabilities increased to 251 billion, compared to 248 billion. This means that Apple is exchanging short-term debts and liabilities with long-term ones, and this is a positive thing.

Do you agree with us that Apple will have a good year in fiscal 2020? Or are there negative surprises coming for the company?

Source:

Apple

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