Apple Reports Strong Mac and iPad Sales in Record Third Quarter Profits

Apple today reported extremely strong third-quarter earnings, offering another look at how the company is shaking up the cost that the COVID-19 pandemic is taking on its business. Analysts had expected around $ 52.3 billion in revenue and earnings per share of $ 2.07, but Apple crushed those predictions with $ 59.7 billion in revenue, 11 percent more than the third quarter of last year, and EPS of $ 2.58. , an 18 percent more. The company announced a four-for-one stock split along with earnings, saying that “each registered Apple shareholder at the close of business on August 24, 2020 will receive three additional shares for each share held on the record date.”

As has become the norm, Apple’s services and wearables divisions performed well. But the iPhone, Mac and iPad also did well during the third quarter. With the updated 13-inch MacBook Pro released in the spring, the entire MacBook lineup has now switched to more reliable keyboards, leaving behind the controversial “butterfly mechanism” design. That likely only helped the already high demand for computers and tablets, as remote work continues for so many people.

This was the first quarter that accounted for sales of the second-generation iPhone SE, which is Apple’s cheapest iPhone with a starting price of $ 399. IPhone sales were particularly slow during the first three weeks of April, according to a Bloomberg interview with Apple CEO Tim Cook, but resumed later.

The company is expected to announce a new line of “iPhone 12” devices in early fall, including one with a 5.4-inch screen that should appeal to consumers looking for a smaller phone with the same full-screen design as most. big . This is rumored to be the year that Apple will bring 5G to some iPhones, although there have been reports that 5G models could be shipped later than the usual September release window.

Other products rumored to launch this year or early next year include premium Apple-branded headphones, a redesigned iMac, the first Macs to run Apple’s own silicon, a Tile-like tracking device, and more. Apple has already revealed many of the new software features coming to iOS 14, iPadOS 14, macOS Big Sur, watchOS, and tvOS, with public versions now available for most updates.

Apple declined to provide earnings guidance for this quarter due to the continuing uncertainty of the COVID-19 pandemic, nor will it for the fourth quarter either. After briefly reopening them to customers, Apple has had to re-close several of its retail stores in the United States as COVID-19 cases increase in many states. Stores that remain open operate at limited capacity and require temperature controls before people can enter. Both employees and buyers must wear face masks.

Photo by Jeff J Mitchell / Getty Images

The pandemic has also delayed Apple’s original time frame for returning to work in its offices. The company has “kicked in the time period” early next year, Cook said. Bloomberg.

Apple’s earnings report comes a day after Cook testified alongside fellow Big Tech executives Jeff Bezos, Sundar Pichai, and Mark Zuckerberg, as lawmakers continue to investigate possible antitrust violations and whether the massive companies now wield too much power. In Cook’s case, the House Judiciary Committee mainly pressured Apple’s chief executive officer on how the company manages the App Store and the subscription fees it collects from developers. “We apply the rules to all developers uniformly,” Cook said, although documents obtained by the committee suggest that companies like Amazon have received special treatment.

But that was yesterday. Cook had a more triumphant tone today. “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,” it said in the earnings press release.