Apple earnings day is upon us, and with it, we learn how the company performed during the third fiscal quarter of 2020, despite the ongoing COVID-19 pandemic. Of note, Apple did not provide any official guidance for Q3 2020 due to the economic uncertainty caused by the pandemic.
How did the COVID-19 outbreak affect Apple’s business during the third quarter? The company has announced revenue of $59.7 billion and profit of $11.25 billion. This compares to $53.8 billion in revenue and $10.04 billion profit reported in the same quarter last year.
Apple CEO Tim Cook, who was fresh off a five-hour testimony to congress less than 24 hours ago, had the following to say about Apple’s Q3 2020 performance:
Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments. In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation. This is a challenging moment for our communities, and, from Apple’s new $100 million Racial Equity and Justice Initiative to a new commitment to be carbon neutral by 2030, we’re living the principle that what we make and do should create opportunity and leave the world better than we found it.
And CFO Luca Maestri added:
Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times. The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories. We grew EPS by 18% and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics.
Going into today’s Q3 2020 earnings release for Apple, there was quite a bit of agreement among analysts that the Q3 results are not particularly important given the ongoing COVID-19 pandemic. Some firms, such as Morgan Stanley, expected Apple to beat expectations, thanks to better-than-expected product sales driven by people needing new technology to work from home.
Other banks, such as Goldman Sachs, took the opposite stance, predicting that Apple would disappoint and that buying AAPL stock was simply too risky. Goldman Sachs also predicted that Apple would not release any guidance for Q4 2020 — which turned out to be the case.
Apple’s board of directors has also declared a cash dividend of $0.82 per share and announced a four-for-one stock split:
The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020, will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.
AAPL Q3 2020 earnings by product
As has become customary, Apple does not report unit sales for any of its hardware products. Instead, it reports a breakdown of revenue by product category. Here are those numbers for fiscal Q3 2020:
- $26.42 billion: iPhone (Up 1.66% YOY)
- $13.16 billion: Services (Up 14.85% YOY)
- $7.08 billion: Mac (Up 21.63% YOY)
- $6.58 billion: iPad (Up 31.04% YOY)
- $6.45 billion: Wearables, Home, and Accessories (Up 16.74% YOY)
On the heels of Apple’s record Q3 2020 earnings, AAPL stock is up nearly 5% in after-hours trading — pushing over the $400 mark.
Stay tuned to 9to5Mac for more coverage from the AAPL earnings call with Tim Cook and Luca Maestri next. You can listen live to the AAPL Q3 2020 earnings call audio streaming at the top of the hour here, or listen back shortly after the call with Apple Podcasts.
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