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Apple still managed to make billions in profit despite coronavirus

By Allison Matyus Published April 30, 2020

Despite lockdowns imposed by nations worldwide and massive hits to the U.S. economy, Apple was still able to make a profit for the second quarter of 2020, according to its first quarterly earnings announcement since the coronavirus became a global pandemic.

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in services and a quarterly record for wearables,” said Tim Cook, Apple’s CEO, in Thursday’s announcement. “In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive.

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Apple stores have been shut down in the U.S. since mid-March, but the company still reported $58.3 billion in revenue in the second quarter of 2020, which is a 1% increase from last year.

Unsurprisingly, iPhone sales made up the greatest share, with $28.9 billion in overall revenue. The iPhone SE, which debuted earlier this month, could have contributed to this number.

Services — which include Apple Music, Apple Arcade, and Apple TV+—brought in $13.3 billion in revenue, which is the highest revenue Apple has seen for that category.

Here’s a more detailed breakdown of Apple’s revenue this quarter:

iPhone revenue: $28.9 billion
Services revenue: $13.3 billion
Wearables and home accessories revenue: $6.3 billion
Mac revenue: $5.6 billion
iPad revenue: $4.4 billion

Apple’s original revenue forecast for the second quarter was for between $63 billion and $67 billion.

The company warned investors in February that it was unlikely to meet its second-quarter revenue forecast due to a few factors related to the coronavirus outbreak, including its production in China and the decrease in iPhone demand, especially in China.

Apple’s stores have finally opened back up in China after being closed since early February, and according to reports, U.S. stores are expected to open back up in early May.

While Apple’s store closures obviously hasn’t impacted its sales, it has impacted Apple’s device support.

Some customers are having to wait longer than they’d hoped to collect devices taken in for repair before the stores closed their doors. The closures have also removed the chance for face-to-face chats with Genius Bar staff, the company’s tech support team. Apple is still offering online support for those who need help with any of their devices.

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Former Digital Trends Contributor

Allison Matyus is a general news reporter at Digital Trends. She covers any and all tech news, including issues around social…

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