TOPLINE
Shares of tech giant Apple fell 1.5% after the company reported first quarter earnings that showed a slowdown in iPhone sales as the coronavirus wreaked havoc on supply chains and global demand.
Services revenue continued to show strong growth while iPhone sales slowed.
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KEY FACTS
Apple reported revenue of $58.3 billion—up 1% from a year ago, which handily beat Wall Street expectations of $54.5 billion.
Total revenue growth fell to 0.5%, down from 9% last quarter, according to a statement.
Services revenue, which includes streaming service AppleTV+, continued to grow and hit a record $13.3 billion—up from $11.4 billion a year ago.
Apple’s iPhone revenue, however, dropped to just under $29 billion—a 7% decrease from last year—as the coronavirus negatively affected demand.
The company disclosed earnings of $2.55 per share, which was higher than the $2.26 expected, according to Refinitiv.
Apple has $192.8 billion in cash on hand, down from just over $207 billion last quarter.
It also plans to continue to buy back stock during the pandemic, issuing a dividend of $0.82 per share on common stock, amounting to a 6% increase.
Crucial quote
“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple
AAPL
Key background
Apple originally withdrew its quarterly guidance back in February, as the coronavirus spread throughout China and caused supply chain issues.
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