Credit has to be given where its due. Apple (NASDAQ:AAPL) managed to grow some business lines during a first calendar quarter riddled with coronavirus-related headwinds. And the lines that contracted likely did so only because consumers were physically unable to get to a product that may or may not have been available. Many retailers, suppliers, and other businesses that are part of the company’s sales ecosystem were simply shuttered during the first quarter of 2020 (Apple’s fiscal Q2).
Given the circumstances, though, it seems Apple’s services would have grown much more than they did for the three-month stretch ending in March. Millions (more plausibly, billions) have been stuck at home for a good part of the past eight weeks, bored out of their minds. It looked like they were buying a lot more digital entertainment. Apparently, they weren’t buying a great deal more of it from Apple using their iPhones.
A truly captive audience shows interest
Last quarter, Apple’s consolidated top line edged 1% higher, reaching $58.3 billion. Services led the way, with revenue for that segment coming in at a record-breaking $13.3 billion for 2020’s second quarter, up 17% year over year. Its iPhone business is still the big breadwinner, driving just under $29.0 billion worth of sales in Q2. That was a 7% dip from the Q2-2019 iPhone sales figure of $31.0 billion. Had it not been for its services