Apple 2020 Q3: Revenue of $59.7 Billion, Stock to Split 4:1

Apple has just announced its fiscal results for the third quarter of 2020 ended June 27, seeing $59.7 billion in revenue, up 11% compared to the year-ago quarter. The company says international sales took up 60% of the quarter’s revenue.

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Tim Cook, Apple’s CEO, in a statement. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation. This is a challenging moment for our communities, and, from Apple’s new $100 million Racial Equity and Justice Initiative to a new commitment to be carbon neutral by 2030, we’re living the principle that what we make and do should create opportunity and leave the world better than we found it.”

Apple saw net income of $11.2 billion for the quarter, thanks to the following breakdown of net sales by category, which saw increases across the board compared to the year-ago quarter:

  • iPhone: $26.4 billion
  • Mac: $7.0 billion
  • iPad: $6.5 billion
  • Wearables, Home and Accessories: $6.4 billion
  • Services: $13.1 billion

Apple’s Board of Directors also approved a four-for-one stock split, “to make the stock more accessible to a broader base of investors,” while also declared a cash dividend of $0.82 per share, payable on August 13, 2020.

The stock split means each Apple shareholder of record at the end of business on August 24, 2020, will get three extra shares per every one share held by that date. Apple will begin trading on a split-adjusted basis starting the last day of August.

“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times,” said Luca Maestri, Apple’s CFO. “The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories. We grew EPS by 18 percent and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics.”

Tim Cook told Reuters in an interview sales started to pick up in May and June, after COVID-19 disruptions in April, assisted by the launch of the $399 USD iPhone SE.

“I think the economic stimulus that was in place – and I’m not just focused on the U.S., but more broadly – was a help,” said Cook.

“Both had some really significant product announcements at the end of March, beginning of April. I think we have the strongest product line in both areas that we’ve ever had,” added Cook, in the interview. “You combine that with the work from home and remote learning, and it’s yielded really, really strong results.”

Considering the previous quarter was during the thick of COVID-19 lockdown measures, for Apple to increase revenue shows there’s no sign of the company slowing down, heading into fall and the holiday quarter.

…developing, refresh for updates