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Apple Smashes Revenue, iPhone Estimates in Record Third...

Business Maverick

Business Maverick

Apple Smashes Revenue, iPhone Estimates in Record Third Quarter

epa08547009 (FILE) - The company's logo at an Apple Store in Washington, DC, USA, 27 January 2015 (reissued 15 July 2020). The General Court of the European Union in Luxembourg announced on 15 July 2020 that it has annulled a 2016 decision taken by the Commission regarding the Irish tax rulings in favour of Apple. Europe's second-highest court said that Apple will not have to pay Ireland 13 billion euros in back taxes after winning an appeal.
By Bloomberg
31 Jul 2020 0

Apple Inc. reported quarterly revenue that crushed Wall Street forecasts after locked down consumers snapped up new iPhones, iPads and Mac computers to stay connected during the pandemic. The stock jumped as much as 6.3% in extended trading.

Apple Inc. reported quarterly revenue that crushed Wall Street forecasts after locked down consumers snapped up new iPhones, iPads and Mac computers to stay connected during the pandemic. The stock jumped as much as 6.3% in extended trading.

The world’s largest technology company also announced a four-for-one stock split after its shares surged more than 80% in the past year, and confirmed that the next iPhones will launch a “few weeks later” than usual.

Fiscal third-quarter revenue came in at $59.7 billion, a record for the June period, Apple said in a statement. That was up 11% from a year earlier and smashed analysts’ estimates of $52.3 billion, according to data compiled by Bloomberg.

The pandemic is keeping people at home, which has spurred demand for Apple devices to help millions of consumers use the internet to keep in touch with friends, family and co-workers.

“In uncertain times, this performance is a testament to the important role our products play in our customers’ lives,” Apple Chief Executive Officer Tim Cook said in a statement.

The pandemic likely boosted iPad and Mac sales due to lockdown rules and an increase in remote learning, while Apple store closures are weighing on iPhone sales, the CEO said in an interview with Bloomberg TV.

Apple’s cheaper iPhone SE, released in April, was also well timed for leaner economic conditions. There were also minor updates to the iPad Pro and MacBook Pro, and new accessories like an iPad Pro keyboard with trackpad. The company plans to launch new Mac computers with its own processors, a cheaper HomePod, and a slew of new iPhones later this year.

Apple soars after third-quarter results

During a conference call, Chief Financial Officer Luca Maestri said the new handsets will be slightly delayed this year, suggesting an October launch.

Read more: Apple to Launch Next IPhones a ‘Few Weeks Later’ Than Usual

The Cupertino, California-based technology giant didn’t provide guidance again due to the ongoing impact of Covid-19.

Revenue from the iPhone was $26.4 billion, beating analysts’ expectations of $21.3 billion. IPad revenue was $6.6 billion, a strong increase from $5 billion a year ago, while the Mac brought in $7.1 billion, another big jump from $5.8 billion in the same period of 2019.

Read more: Apple Kicks U.S. Office Return Back to Early 2021, CEO Cook Says

Services, which includes the App Store, Apple Music and iCloud subscriptions, generated sales of $13.2 billion, up from $11.5 billion a year ago and roughly in line with Wall Street expectations. The company said it has more than 550 million paid subscriptions and is on track to reach 600 million by year-end.

Cook said some services, including AppleCare repairs and advertising, were negatively impacted by the pandemic. The virus has also paused production of Apple TV+ shows shot in Los Angeles, the CEO added. Still, he cited record revenue for the App Store, Apple Music, video products and cloud services.

The June quarter also included earnings per share of $2.58, an 18% increase, and a record for the company’s installed base of active devices.

Apple’s Wearables, Home and Other Products category, one of the firm’s fastest segments that includes the Apple Watch and AirPods, brought in $6.5 billion in revenue. That beat Wall Street predictions of $6.1 billion.

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