Apple Retail Business Sets Record on Strong Online Sales, as COVID-19 Closes Stores

Apple's retail business had a record quarter, despite closed stores, said CEO Tim Cook on a fiscal Q2 call Thursday. He credited “phenomenal growth” in online sales. Revenue for the quarter ended March 28 grew 1% to $58.3 billion, “despite the extreme circumstances from the impact of COVID-19,” Cook said. Product revenue was $45 billion, and services revenue grew 17% year on year to a high of $13.3 billion, said Chief Financial Officer Luca Maestri. IPhone sales were $28.9 billion vs. $31 billion, said the company. Sales of wearables, home products and accessories grew to $6.3 billion from $5.1 billion. Asked whether strong sales of the new $399 iPhone SE (see 2004150049) could indicate a trend to lower priced iPhones amid economic uncertainty, Cook said he hasn’t seen that. “It appears that those customers are primarily coming from wanting a smaller form factor,” or switching from Android devices, he said.