Apple Delays iPhone 12, As Sales Shrug Off Virus Gloom

What pandemic? Apple defies store closures, stalling economies and the global Coronavirus pandemic to deliver strong financials

Apple has beaten Wall Street expectations after delivering a strong set of third quarter results that has defied the Coronavirus pandemic and stuttering global economies.

Despite Apple having to close most of its stores worldwide, the firm recorded revenue increases across every category and in every geography, helped by the increasing number of consumers in lockdown who turned to using its products and services.

But it was not all good news after chief financial officer Luca Maestri confirmed rumours that Apple’s new portfolio of iPhones, usually released in late September, will be delayed by a few weeks.

Strong financials

But besides the delay of the arrival of the new iPhone 12, there was no disguising the strong performance Apple has delivered in the past quarter.

For the period ending 27 June, Apple posted a net profit of $11.2 billion, up from a net profit of $10bn in the same year-ago quarter.

There was also the same good news on the sales side, as revenues rose 11 percent to $59.7bn from $53.9bn a year earlier.

“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 CEO Tim Cook, who had had a relatively easy ride hours earlier when he had faced US lawmakers over antitrust issues.

“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,” said Cook.

Indeed, Apple’s financials beat Wall Street expectations and shares in the tech giant rose as much as 6 percent in extended trading.

Sector breakdown

And digging down in Apple’s performance, it is easy to see why its management will be so pleased at its performance during the pandemic.

Apple’s main money maker is of course the iPhone, and iPhone sales were recorded at $26.42 billion, which was $4 billion more than analysts had been expecting.

In an interview with Reuters, CEO Tim Cook said that after disruptions in April, sales began to pick back up in May and June, helped by what he called a “strong” launch for the $399 iPhone SE introduced in April.

But Apple’s other products also performed well during the Covid-19 lockdown, with sales at its services segment (iCloud and Apple Music) rising 14.8 percent to $13.16 billion.

Analysts had been expecting $13.18 billion.

Remote working helped Apple report sales in its iPad and Mac segments of $6.58 billion and $7.08 billion respectively, which beat analyst expectations of $4.88 billion and $6.06 billion.

And the wearables segment, which includes the Apple Watch, posted a 16.7 percent rise in sale to $6.45 billion, compared with analyst estimates of $6.0 billion.

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