Apple On A Roll As Stock Climbs 80% & Sales Surge
Apple Inc. Chief Executive Officer Tim Cook said that store closures related to the Covid-19 pandemic are weighing on sales of the iPhone and wearable devices more than the iPad and Mac.
Cook said the pandemic likely boosted iPad and Mac sales due to lockdown rules and an increase in remote learning. “There is a shift that occurs online, but online doesn’t fully make up for the offline loss,” he said in an interview with Bloomberg TV.Still, the “iPhone did better than what we expected,” Cook said. Apple’s iPhone sales climbed 1.7% to $26.4 billion in the fiscal third quarter, topping the average $21.3 billion estimate.
Apple saw a slow first three weeks of iPhone sales in April when the impact of Covid-19 was “particularly bad,” but conditions improved in May and June. The iPad had its best June quarter in 8 years and the Mac had a June quarter record, he said.
Consumers are buying up iPhones and iPads as well as MacBooks with Apple’s stock climbing 5% after the US Company smashed estimates for the quarter.
During the past 12 months Apple stock has surged 80% much to the relief of investors, the weak spot is iPhone sales due in part to store closures due to COVID-19.
Third-quarter revenue came in at $59.7 billion, a record for the June period, Apple said in a statement. That was up 11% from a year earlier and smashed analysts’ estimates of $52.3 billion, according to data compiled by Bloomberg.
“In uncertain times, this performance is a testament to the important role our products play in our customers’ lives,” Apple Chief Executive Officer Tim Cook said in a statement.
Apple’s cheaper iPhone SE, released in April, contributed to the rise in sales. There were also minor updates to the iPad Pro and MacBook Pro, and new accessories like an iPad Pro keyboard with trackpad. The company plans to launch new Mac computers with its own processors, a cheaper HomePod, and a slew of new iPhones later this year.The Cupertino, California-based technology giant didn’t provide guidance again due to the ongoing impact of Covid-19.
Revenue from the iPhone was $26.4 billion, beating analysts’ expectations of $21.3 billion. For the iPad, Apple reported revenue of $6.6 billion, a strong increase from $5 billion a year ago. The Mac brought in $7.1 billion, another big jump from $5.8 billion in the same period of 2019.
Services, which includes the App Store, Apple Music and iCloud subscriptions, generated sales of $13.2 billion, up from $11.5 billion a year ago and roughly in line with Wall Street expectations.
The June quarter also included earnings per share of $2.58, an 18% increase, and a record for the company’s installed base of active devices.
Apple’s Wearables, Home and Other Products category, one of the firm’s fastest segments that includes the Apple Watch and AirPods, brought in $6.5 billion in revenue. That beat Wall Street predictions of $6.1 billion.