Apple says revenue rose slightly despite virus

Apple on Thursday reported a slight uptick in year-over-year revenue despite supply chain disruptions and closure of its stores in China and worldwide due to the coronavirus pandemic.

Second-quarter revenue rose 1 percent to $58.3 billion, but profit declined about 3 percent to $11.25 billion, or $2.55 a share.

The results beat analysts' estimates of about $55 billion in revenue, but fell short of the company's projections of about $63 billion issued before the worldwide outbreak of COVID-19.

"Despite COVID-19's unprecedented global impact, we're proud to report that Apple grew for the quarter, driven by an all-time high record in Services and a quarterly record for Wearables," Tim Cook, Apple's CEO, said in a statement.

Despite the economic turmoil, Apple declared a cash dividend of $0.82 a share for the company's common stock, an increase of 6 percent. The board of directors also authorized a $50 billion increase to the share repurchase program.

In Apple's fiscal year 2019, the company spent $67.1 billion repurchasing shares and $14.1 billion on dividends. Many publicly traded companies have suspended buybacks during the pandemic. But Apple had $207.06 billion on hand at the start of the calendar year, according to company filings.

However, Apple didn't offer earnings guidance for the quarter ending in June as it did in the past.

Apple has been hit hard by supply chain disruptions caused by the coronavirus in China. The company rescinded its initial guidance for the second quarter in February after China extended the Lunar New Year holiday as part of the effort to reduce the spread of the coronavirus.

Apple closed its stores in China and didn't reopen them until March. As the coronavirus spread, Apple closed stores around the world. As a result, Apple faced three problems in the quarter: supply constraints, sales outlets closure and a sharp reduction in demand as shelter-in-place orders took effect in its markets.

Despite the challenges, Apple still hopes to launch its next-generation iPhone, including some with 5G connectivity in September. But market availability could slip a month, The Wall Street Journal reported.

The new iPhones will carry Apple through the holiday season and into 2021. Analysts believe the 5G capability will generate robust sales and more users than normal decide to upgrade their devices.

But that assessment depends on the economy restarting and millions of people returning to work in before the new phones are available.

Apple launched its iPad Pro with a $299 keyboard option, and its $999 MacBook Air laptop during the pandemic. After the quarter ended, the company in April launched the iPhone SE that retails for $399.