Apple Delivers Blockbuster Quarter Despite Slow iPhone Sales

  • Apple Delivers Blockbuster Quarter Despite Slow iPhone Sales

Apple Delivers Blockbuster Quarter Despite Slow iPhone Sales

During Thursday's Q3 2020 earnings call, Apple CEO Tim Cook summed up how COVID-19 affected sales of the company's various products.

The company's stock was up 6% in after-hours trading after the earnings release. "We grew EPS by 18 per cent and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics", Maestri informed.

When asked to clarify his comments, Maestri said, "I said in my remarks that a year ago we launched new iPhone in late September". The iPhone SE accounted for about 28% of Apple's global sales this quarter. "We attribute this increase in demand to several interactive causes, including a strong iPhone SE launch, continued economic stimulus, and potentially some benefit from shelter-in-place restrictions lifting around the world", he explained.

Apple very rarely delays anything, and as Techradar points out, the only times it's happened so far have been due to supply chain issues (or so they said - we can't imagine Apple owning up to anything ever). Apple's board of directors approves a four-for-one stock split, effective from August 31.

This is Apple's first share split since 2014. Cook told Reuters that Apple has 550 million paying subscribers on its platform, up from 515 in the previous quarter. But Apple still saw a 17-percent increase in revenue for the category year over year - setting a June quarter record in a majority of its markets. It represents the company's third fiscal quarter of 2020.

Apple benefited from remote work and learning trends, reporting sales in its iPad and Mac segments of US$6.58 billion and US$7.08 billion, which beat expectations of US$4.88 billion and US$6.06 billion. The iPhone is still, by far, Apple's biggest business, and it now represents 44 percent of its total revenues. In Cook's case, the House Judiciary Committee mainly pressed Apple's chief executive on how the company runs the App Store and the subscription fees it collects from developers.