Warning: This story has not been updated in several years and may contain out-of-date information.
So, another record fiscal quarter for Apple. Are we surprised? Not really, I suppose, though it’s interesting to remember that last year’s holiday quarter was actually smaller than the previous year’s, which set the record. 2019 is now the champ, with $91.8 billion in revenue. Yikes.
Anyway, here are a few quick observations about this quarter’s Best Quarter Ever.
The iPhone 11 is the core iPhone
If you were wondering about Apple’s strategy to make the successor to the iPhone XR the “real” iPhone 11, and rebranding the iPhone X successors as pro models, wonder no more. According to Apple, the iPhone 11 outsold the iPhone 11 Pro and 11 Pro Max every single week of the holiday quarter.
That said, I’d assume that the two pro models put together outsold the iPhone 11. But it’s clear that the iPhone 11 has been a success, and it’s only right.
Also, let’s give a clap to the iPhone, which returned to year-over-year revenue growth for the first time in a year. Apple says that its trade-in programs have worked wonders, including in China. and also suggests that the (U.S. only) Apple Card installment plan also has helped contribute to iPhone sales.
The iPhone is never going to be the growth engine it was during the middle of the last decade, but it’s still an enormous contributor of revenue and profit to Apple, and I suspect its sales will ebb and flow as new models come and go. There are worse things for a company to have than a boring product that just keeps dumping $146 billion a year into the coffers.
Wearables are big—and interesting
Apple’s wearables business is clearly successful and growing rapidly, as expressed in the Wearable/Home/Accessories category’s rapid growth. It was $10 billion in revenue for that category this quarter, up 37 percent from the year-ago quarter and marking 12 straight quarters of 20+% growth.
Apple provided a few fun tidbits in its description of what’s going on inside the Wearable/Home/Accessories bundle. Apple Watch set a new revenue record, though Apple won’t say what that record is. Perhaps more interesting even than that, the company claimed that 75 percent of Apple Watch purchases were from people who were new to the product.
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