Apple’s iPhone sales showed resilience between April and June, despiteThe pandemic has continued to spread, enlarging life and disrupting business around the world. Apple, amid a strong fiscal report in the third quarter, has shown its success it has its limits, which means the new iPhone will be .
The technology giant twice warned investors during a conference call Thursday, watching Apple Apple will among other things, it will be delayed by its typical September launch.
“As you know, last year we started selling iPhones in late September. This year, we’re doing a supply project that will be available a few weeks later,” said Luca Maestri, Apple’s CFO.
When an analyst later asked him to clarify, Masters said a new iPhone was coming, we just had to wait. “A year ago we launched the new iPhone links in late September,” he said. “This year, the supply of the new product will be a few weeks later.”
There is a reason for Wall Street’s. The smartphone is Apple’s most important product, accounting for more than half of its revenue in at least the past six years. The device is also largely responsible for turning Apple into the juggernaut it is today, valued at more than $ 1.65 trillion on Wall Street and producing more than 1.5 billion devices that are being actively used. around the world.
Apple’s latest financial disclosure is just the latest sign of how the coronavirus pandemic has affected the world economy. In the United States, overall smartphone sales fell by a quarter in the same period, according to Counterpoint Research. Apple derives most of its revenue from the sale of its iPhones, which saw a small tick from a year ago.
Overall, more than 40 million Americans have filed for unemployment, raising questions about whether consumers have an appetite to buy new high-end gadgets. U.S. GDP, a measure of America’s economy, suffered its biggest quarterly decline on record, falling 32.9% between April and June.
The U.S. government has tried to combat these issues with enhanced unemployment benefits, although that program expired last weekend for about 30 million Americans, and more will be hit in the coming months. And while the stock market is hovering at near-all-time highs, economists fear it may not last as long as Congress follows from another series of stimulus and aid to the negotiating unemployment.
But a spike in COVID-19 cases in different parts of the United States, which began in June and continues today with Florida reporting a one-day death record for the third straight day, raises questions about the prospects of ‘Apple in the coming months. Although Apple is hailed as one of the top supply chain companies in the world, bringing together a network of hundreds of suppliers to make its devices primarily in China, Apple watch worries that it may hit more than COVID-19 as it prepares for the holiday shopping season.
“We took an approach that you know we are trying to understand how the virus is evolving over time,” Apple Masters said.
Investors appeared unaffected by the delay, sending Apple stock up more than 5% in after-hours trading, closing more than 1% at $ 384.76 per share. Shares of Apple, valued at the company at $ 1.67 trillion, have risen more than 28% so far this year.
Despite the relative struggles of the iPhone, Apple said the other categories of its products went well.
During the quarter of its third fiscal quarter, which ended on June 27, Apple said it picked up iPad sales of $ 6.6 billion, up 31% from the same time last year. . Mac computer sales were nearly $ 7.1 billion, up 21% from last year. Apple CEO Tim Cook noted that these categories have benefited from the environment, with people locked in their homes likely looking for work or leisure equipment.
The company’s goods and services businesses, which, while smaller than the iPhone business, are a key part of Apple’s future, both have double-digit growth. The wearable segment, which includes the Apple Watch and AirPods, recorded sales of $ 6.5 billion. Its services, including subscription services such as Apple Music and Apple TV Plus, have posted $ 13.2 billion in revenue.
Even the iPhone, whose production has slowed in China has led Apple to, moved $ 26.4 billion in sales, up more than 1% from the same time a year ago. At the time, it included worldwide lockdown orders and the temporary closure of Apple retail stores. The minor bump is also better than last year, when Apple posted a nearly 12% drop in iPhone sales during the spring months before its iPhone 11 unveiled.
All told, Apple said it picked up a $ 11.3 billion profit, up 12% from the same year last year. That translates to $ 2.58 per share in earnings, up $ 59.7 billion in global revenue, which by itself had risen 11% from last year. This was well above what analysts were expecting the company to report, averaging $ 2.04 per share in profits over $ 52.3 billion in revenue, according to a survey published by Yahoo Finance.
“In uncertain times, this performance is a testament to the important role our products play in the lives of our customers and of Apple’s relentless innovation,” said Tim Cook, Apple’s CEO, at statement. He noted Apple’s growth in each of its international markets, including China, where sales increased by 1% despite being the epicenter of the initial coronavirus outbreak.
While Cook indicated that his company has a little handle on the coronavirus, he warned that the company is likely to struggle to meet the demand for the iPad and Mac during the important. Analysts believe the uncertainty surrounding whether schools will reopen could drive more technology purchases by households, despite the economic turmoil, which is putting pressure even on Apple to deliver devices.
“We’ve got a fantastic lineup of products,” Maestri said. “And we know these products are incredibly relevant, especially given the current circumstances.”