Apple announces $59.7 billion revenue in Q3 2020, record double-digit growth

Joanna Estrada
August 1, 2020

The stock jumped as much as 6.3% in extended trading. On Thursday, Apple reported its second quarter earnings, which reveal sales of the product were up 2 percent year over year, despite the economic impact from COVID-19. That beat Wall Street predictions of $6.1 billion.

Revenue from the iPhone was US$26.4 billion, beating analysts' expectations of US$21.3 billion. However, Apple CFO Luca Maestri said in an earnings call with investors on 31 July that it wouldn't be the case for this year.

The rest of the earnings call was pretty positive, thanks in part to said iPhone SE: sales of iPhones are up two per cent on a year ago, and iPad and Mac sales have rocketed despite the issues coronavirus causes.

JPM analyst Samik Chatterjee said the performance spoke volumes about the importance of Apple products to consumers, and showed them willing to circumvent the traditional practice of buying from the physical channel when required.

As part of its earnings release yesterday, Apple also announced that it will be initiating a four-for-one split of its stock in late August. Current owners of Apple stock will receive three additional shares for each share they own. Cook told Reuters that Apple has 550 million paying subscribers on its platform, up from 515 in the previous quarter.

Sales in the wearables segment that includes the Apple Watch rose 16.7 per cent to US$6.45 billion, compared with estimates of US$6.0 billion. It represents the company's third fiscal quarter of 2020.

"Both had some really significant product announcements at the end of March, beginning of April", Cook told Reuters. "iPad was helped in the June quarter there by the work-from-home and distance learning [trends], as it was in other geographies, and the Mac also grew strong double digit". The company witnessed a profit of $11.25 billion, up from $10.04 billion profit the same quarter in 2019. 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.

Other reports by Click Lancashire

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