Apple iPhone sales showed consistency between April and June, thoughthe continuing spread of the pandemic, the rise of life, and the disruption of business across the globe. Apple, in the middle of a strong fiscal report for the third quarter, signaled its success has its limits, and that means the new iPhone will be .
The tech giant twice warned investors during a conference call Thursday, which Apple observers say they will among other things, it will be delayed by its typical September release.
“As you know, last year we started selling iPhones in late September. This year, the project supply will be available a few weeks later,” said Luca Maestri, Apple’s CFO.
When an analyst later asked him to clarify, Maestri said a new iPhone was coming, we have to wait. “A year ago we started new iPhone connections in late September,” he said. “This year, the supply of the new product will be a few weeks later than that.”
There is a reason for Wall Street’s. The smartphone is Apple’s most important product, representing more than half of its revenue in at least the last six years. The device is also largely responsible for turning Apple into the scam it’s today, worth more than $ 1.65 trillion on Wall Street and producing more than 1.5 billion devices that are actively used across the globe.
Apple’s latest financial revelations are just the latest sign of how the coronavirus pandemic has affected the world economy. In the US, overall smartphone sales fell by a quarter over the same period, according to Counterpoint Research. Apple derives most of its revenue from the sale of its iPhones, which saw a small note from a year ago.
Broadly, more than 40 million Americans have applied for unemployment, raising questions about whether consumers will have the appetite to buy new conditional equipment. U.S. GDP, a measure of the U.S. economy, experienced its biggest quarterly decline in record, falling 32.9% between April and June.
The U.S. government has tried to tackle these issues with increased unemployment benefits, even though that program expired last weekend for nearly 30 million Americans, and more will be affected in the coming months. And, although the stock market is jumping to all-time highs, economists fear it could not last unless Congress follows it into another round of stimulus and unemployment aid it is negotiating.
But an attack on COVID-19 cases in various parts of the U.S., which began in June and continues today when Florida reports a one-day death record for the third straight day, raises questions about the prospects of Apple in the coming months. Although Apple has been hailed as one of the best supply chain companies in the world, bringing together a network of hundreds of suppliers to make its devices mainly in China, Apple observers worry it could be further hit by COVID-19 while prepare for the holiday shopping season
“We’ve taken an approach that you know we’re trying to understand how the virus is evolving over time,” said Apple Maestro.
Investors seemed unaffected by the delay, sending Apple shares up more than 5% in after-hours trading, after closing more than 1% at $ 384.76 per share. Apple shares, which value the company at $ 1.67 trillion, have risen more than 28% so far this year.
Show the numbers
Despite the relative efforts of the iPhone, Apple said other categories of its products did well.
During the three months to its third fiscal quarter, which ended June 27, Apple said it boosted iPad sales by $ 6.6 billion, up 31% from the same time last year. Sales of Mac computers were nearly $ 7.1 billion, up 21% from last year. Apple CEO Tim Cook noted that these categories took advantage of the environment, with people locked in their homes likely to seek out equipment for work or leisure.
The company’s clothing and services businesses, which, though smaller than the iPhone business, are a major part of Apple’s future, both posted double-digit growth. The clothing segment, which includes the Apple Watch and AirPods, posted sales of $ 6.5 billion. Its services, including subscription services like Apple Music and Apple TV Plus, posted $ 13.2 billion in revenue.
Even the iPhone, whose slow production in China made Apple, high sales $ 26.4 billion, more than 1% from the same time a year ago. This time included blocking orders worldwide and the temporary closure of Apple retail stores. The small crash is also better than last year, when Apple announced a nearly 12% drop in iPhone sales during the spring months before unveiling the iPhone 11.
All told, Apple said it achieved a profit of $ 11.3 billion, 12% more than the same as last year. This translates to $ 2.58 per share in revenue, to total revenue of $ 59.7 billion, which itself grew by 11% from last year. It was also much higher than analysts had expected from the company, which averaged $ 2.04 per share in earnings with $ 52.3 billion in revenue, according to surveys 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 to Apple’s relentless innovation,” said Tim Cook, Apple CEO, in a statement. He noted that Apple recorded growth in each of its international markets, including China, where sales rose 1% despite being the epicenter of the initial coronavirus outbreak.
While Cook indicated that his company has somehow a handle on the coronavirus, he warned that the company is likely to struggle to meet the long-awaited requirements for iPad and Mac.. Analysts believe uncertainty about schools will reopen could lead to further tech purchases by families, despite the economic turmoil, putting even more pressure on Apple to provide equipment.
“We have a fantastic lineup of products,” Maestri said. “And we know these products are extremely important, especially given the current circumstances.”