Apple shares soared to record highs on Wednesday after the company delivered better-than-expected earnings and revenue during fiscal Q1 following strong sales of the iPhone 11.
Apple came in with revenue of $91.8bn for the final three months of the 2019 as iPhone sales rallied to $56bn and its Services and Wearables segments continued to prosper.
While the Cupertino-based company posted all-time record revenues and profits, investors grilled CEO Tim Cook about the reliance on China for the manufacturing of core products.
Reports on Tuesday claimed that Apple may be forced to rein in its plans to ramp up production of the iPhone 11 and upcoming iPhone SE successor due to the outbreak of the coronavirus.
Cook admitted that there was “greater uncertainty” about fiscal Q2 due to the virus and offered a wider revenue guidance of between $63bn and $67bn for the period.
Despite those concerns, the latest quarter represented a return to form for Apple after a rare, tough festive period a year ago when iPhone sales slumped and forced the company to slash guidance for the first time in a decade.
Apple has been looking to diversify its product line during the last two years and Cook hailed “phenomenal” demand for its wireless AirPods that fuelled a 37% revenue spike for the Wearables business.
The recent launch of Apple TV+ also helped revenue from services to climb 17% to $12.7bn, though that was a shade below the pre-report analyst estimates.
eMarketer analyst Yoram Wurmser said that Apple was pressured by the recent launch of Disney+, which has been hugely popular with the general public.
Cook rounded out his statement by revealing that the number of active Apple devices increased 7% to 1.5 billion in fiscal Q1.
Apple stock has now made gains of 27% during the last three months after rising a further 3% in Wednesday’s trading.