Apple exceeds Q3 revenue expectations despite COVID-19 pandemic

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Apple exceeds Q3 revenue

On July 30, Apple announced its financial results for its third quarter of 2020, which ended on June 27. Wall Street analysts predicted revenue of $52.25 billion, but Apple went on to deliver $59.69 billion, with its overall year-over-year revenue growing nearly 11%. 

The company’s year-over-year revenues were increased in every product category measured and every geography, increasing its earnings per share to $2.58, compared to the $2.04 that analysts expected. 

It is not the first time Apple reports significant earnings since the start of the pandemic, but Q3 was the first quarter to take place entirely under coronavirus impact. Apple also went on to announce a four-for-one stock split that is scheduled to happen in August. The company stated “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.”

Tim Cook went on to say that Apple’s record Q3, especially in these times of uncertainty, serves as a testament that their products play a significant role in the lives of their customers, as well as to the company’s thrive for innovation. 

A closer look at the numbers

Because the company’s original time frame for returning to the office was kicked back to the beginning of 2021, Apple provided a live streaming of its Q3 results conference call on July 30. The recording was also available for about two more hours after it ended, on Apple’s website. 

As usual, no one was surprised to see Apple’s services and wearables division was strong this year, generating sales of over $13 billion during Q3, compared to nearly $11.5 billion last year. Their iPhone, iPad, and Mac divisions did better than last year as well, generating nearly $1 billion more in net sales than it did this time last year. 

Despite iPhone sales being particularly slow during the first three weeks of April, things picked up pretty well afterward. One good reason for this could be the launch of Apple’s new generation of iPhone SE, which is the company’s most affordable phone, with prices starting at $399. 

What’s next for the company?

After such triumphant results, Apple has even more expectations to meet for the rest of this year. Apple enthusiasts are waiting for the company to announce its new lineup of iPhone 12 devices this fall, including a 5.4-inch display model that was designed to appeal to consumers looking for a smaller-sized phone. 

Rumors say this year will be the year Apple brings 5G technology to some of its devices, although these models may ship later than usual. Voices from the inside also say Apple is planning to release a range of new devices this year, including a redesigned iMac, premium headphones, and a tracking device. 

The Q3 financial results conference happened just one day after Tim Cook, Apple’s CEO, was summoned to a Zoom antitrust hearing in Washington, D.C. Officials questioned him, together with CEOs from Amazon, Google, and Facebook, about anti-competitive practices and concerns the four Big tech companies may hold too much power.