iPhone sales bounces back to drive Apple growth

But services revenue falls short

Apple's final three months of 2019 were marked by soaring holiday sales of its newest iPhone models and wearable gadgets, such as AirPods, helping the vendor log a nine per cent increase in revenue to $91.8bn.

The Q1 2020 hike was more than $4bn higher than what Wall Street had expected, and helped mitigate a more disappointing quarter for services.

"We are thrilled to report Apple's highest quarterly revenue ever, fuelled by strong demand for our iPhone 11 and iPhone 11 Pro models," CEO Tim Cook said.

Revenue from iPhones alone totalled $55.96bn, and delivered more than half of the company's overall sales.

However, services revenue did not meet expectations. Sales for the segment hit $12.72bn, below the $13.06bn forecast.

Apple's CFO, Luca Maestri, noted that services revenues was still at a record quarterly high.

"Our very strong business performance drove an all-time net income record of $22.2 billion and generated operating cash flow of $30.5 billion," said

Cook also sounded a note of caution for the company's Q2 over the potential impact of the "uncertainty" surrounding the coronavirus outbreak in China.

"We're still gathering lots of data points and monitoring it very closely," he told analysts in an earnings call.

He said that the situation is already affecting some of the vendor's local suppliers and retail operations.