Apple boosts sales due to China reopening, but does not make second quarter forecasts

Apple Inc. reported sales and earnings that exceeded Wall Street expectations on Thursday, and CEO Tim Cook said sales in China “are going in the right direction” when the country is resuming activity.

However, Cook said it was impossible to forecast results for the current quarter due to the uncertainty created by the coronavirus pandemic.

Few American companies have been as exposed to the spread of the coronavirus as Apple, whose iPhone sales declined in the March quarter as device sales went online in many places.

Sales of services such as streaming television content increased with billions of people locked up in their homes.

China, where the virus was first detected, is both a major market for Apple, which supplies about a sixth of its overall sales, the location that houses most of the factories it hires.

Apple saw sales in China of $ 9.46 billion, less than $ 1 billion a year ago, a sign of how the company will fare as other markets emerge from the blockages.

“When the containment went into effect in late January, we saw a very sharp drop in demand for the month of February,” Cook told Reuters. Apple slowly reopened Chinese stores, and they all went back to work in mid-March.

“Compared to February, we saw a nice improvement in March and an additional improvement in April. China is going in the right direction,” he added.

Apple reported sales of $ 58.3 billion and earnings of $ 2.55 per share for its fiscal second quarter ending in March, more than the $ 58 billion and $ 2.46 a share for the same period last year. The result also exceeded analyst expectations.

Cook declined to comment on whether Apple faces supply chain disruptions for devices that will be released later this year, and said the company has no comment on releases.

Sign Up for Our Newsletters

You May Also Like

Anglo American confirms interest in mining exploration in Ecuador and announces US $ 50M investment

Global miner Anglo American has signed a joint venture with Canada’s Luminex…

Toshiba will lay off 7,000 workers and sell key assets

Toshiba announced that it will dispose of assets and cut personnel and…

Merck earns 52.5% less in the first quarter of 2018

The US pharmaceutical has announced that in the first quarter of this…