While the coronavirus has affected Apple’s earnings, its overall second quarter results are better than predicted because of the company’s increasing reliance on wearables and services.
Services like Apple Music, and Wearables like Apple Watch, have become significant earners for Apple
During its legally required second quarter financial earnings call, Apple announced better than expected results across most areas, but especially in its newest businesses. Wearables achieved a quarterly record, while services reached an all-time high of $13.3 billion.
“In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive,” said Tim Cook. “Despite COVID-19’s unprecedented impact, we’re proud to report that Apple grew for the quarter.”
Apple’s Wearables, Home and Accessories net sales were $6.284 million, compared to $5.129 million for the same quarter in 2019. Services’s record high of $13.348 million comes after last year’s $11.450 million for the quarter.
The company has been transitioning away from its dependence on iPhones, iPads, and Macs in hardware, chiefly since the Apple Watch launched in 2015, and the AirPods, which first came out in 2016.
Its services have been expanding considerably since its first ventures into iCloud and then in 2015 with Apple Music. Last year saw the launch of major new ventures in Apple TV+, Apple News+, Apple Arcade, and Apple Card.