Apple in its second-quarter results of the fiscal year 2020 posts quarterly revenues of US$58.3 billion with the company reporting that its services revenues have a new high of US$13.3 billion. The company announces its results on April 30 with Tim Cook, CEO of Apple highlighting that its users “are depending on Apple products in renews ways to stay connected, informed, creative, and productive.” However, the iPhone revenues were said to be 7% down year-over-year (YoY) while the Mac revenues were down by 3% YoY.
The iPad revenues were also said to be down 10% YoY. The revenues from the wearables and the services segment made up for the all declines that Apple witnessed with the wearables contributing 23% YoY growth while the services accounted for 17% YoY jump.
The services segment which includes App Store, Apple Music, and Apple TV Plus had steady growth over the years with Apple increasing its focus on the services segment in 2019. The company in March 2019 launched Apple News Plus, Apple Card, Apple Arcade, and Apple TV Plus in a special “It’s showtime” event.
The services segment prior to the March 2019 event registered a spike from accounting for 16% of the overall quarterly revenue in Q2 2017 to 18% of overall revenues in Q3 2018. In Q2 2020, the services segment accounts for 23% of the overall revenues registering a 17% annual increase. Further, the services segment is said to be the only business for Apple that is said to have grown sequentially representing a 5% increase quarter-over-quarter.
“We worked with everyone from Oprah to Lady Gaga to inform, entertain and give back through Apple TV and services like FaceTime and Messages set new all-time records for daily volume during this quarter as users relied on their devices to stay connected in a new reality,” Cook said in the earnings call.