SECOND TAKE: FT’S LEX
THE LEX COLUMN: Apple dials up profits
Despite plans to focus on wearables and services, the iPhone is still at the core of the company’s success
What just happened? This time in 2019 Apple CEO Tim Cook was issuing glum revised guidance amid falling smartphone demand. Now iPhone sales are up 8% to $56bn in the first three months of the 2020 fiscal year and Apple is celebrating an estimate-beating three months for revenues and profits.
This is not the result of a revolutionary new product. The iPhone 11 was released in September 2019 to good reviews but was not considered radical. Streaming service Apple TV+ was supposed to be the smash hit of 2019 but lost momentum with a number of ho-hum programmes. Coyness over sign-up numbers suggests it did not equal the 10-million people who subscribed to Disney’s service when it launched.