Overcoming COVID-19, Apple Achieves Record-Breaking Performance... iPad and Mac Soar

Apple's June Quarter Revenue Grows 11% Year-on-Year to $59.7 Billion
Tim Cook: "Offline Store Closures Negatively Impact iPhone and Wearables"
"Shift to Online Sales Ongoing but Offline Losses Not Fully Offset"
4-for-1 Stock Split Approved... Price Drops from $380 to $100

[Image source=Yonhap News]

[Asia Economy Reporter Han Jinju] Despite the novel coronavirus disease (COVID-19), Apple recorded an all-time high performance that defied market expectations. Although iPhone sales only saw a slight increase due to Apple Store closures, sales of iPads and Macs rose significantly.

On the 30th (local time), Apple announced that its fiscal third-quarter (April to June) revenue grew 11% year-over-year to $59.7 billion. According to Bloomberg, this performance far exceeded Wall Street's revenue estimate of $52.3 billion. Earnings per share rose 18% to $2.58.

Apple CEO Tim Cook said, "We recorded double-digit growth in both products and services," adding, "This performance during uncertain times is proof that our products play an important role in consumers' lives."

The driving force behind the results was sales of iPads and Macs. Quarterly iPad revenue increased 31% year-over-year to $6.6 billion, significantly surpassing market expectations of $4.9 billion. Mac revenue rose 21% from last year to $7.1 billion. The surge in related device sales was due to expanded remote work and online education amid COVID-19, as well as Apple’s online launch of the iPad Pro and MacBook Pro in April.

In an interview with Bloomberg, CEO Tim Cook said, "Due to the COVID-19 pandemic, offline stores have closed, negatively impacting sales of iPhones and wearable devices," adding, "Although sales have shifted significantly online, they have not fully compensated for the offline losses."

Apple Store

Due to offline store closures, iPhone sales only saw a slight increase. Thanks to the launch of new products such as the iPhone SE, iPhone revenue reached $26.4 billion. This was a 1.6% increase from last year but fell short of Wall Street’s forecast of $21.2 billion. Regarding this, CEO Tim Cook stated, "This is a performance beyond what we expected."

Wearable sales, including Apple Watch and AirPods, grew 17% year-over-year to $6.5 billion, exceeding the forecast of $6.0 billion. Service revenue, including the App Store, Apple Music, and iCloud, rose 15% from last year to $13.2 billion.

IT media outlet CNET explained, "This quarter’s results reflect the changes in the global retail market caused by COVID-19 damage, but they did not harm Apple’s stock price," adding, "Apple’s market capitalization is expected to exceed $2 trillion."

On the same day, Apple decided to split its stock. The board approved a 4-for-1 stock split. The current price of about $380 per share will be reduced to around $100 per share, making it easier for individual investors to purchase Apple stock. Trading of the split shares will begin on August 31, and existing shareholders will receive three additional shares for each share they hold. This is Apple’s fifth stock split to date.

This content was produced with the assistance of AI translation services.