Despite ongoing challenges presented by the global COVID-19 health pandemic, Apple reported a record third-quarter 2020, with an increase in revenue in both products and services. Amid grueling questions from Congress over antitrust issues and complaints from developers, Apple boasted how its App Store has contributed greatly to the economy.
“We do not have a zero-sum approach to prosperity, and especially in times like this, we’re focused on growing the pie, making sure our success isn’t just our success,” CEO Tim Cook said during the company’s earnings call. Cook boasted about a new Swift coding curricula, a professional learning course exclusive to educators, and adding more coding centers at 10 historically black colleges and universities.
Prior to Apple’s earnings report, analysts had speculated a potential decline in earnings, even calling the quarter a potential “throwaway” for Apple due to more limited consumer spending and recent store closures from the pandemic. Apple’s numbers prove otherwise, and the company posted an 11% increase in quarterly revenue from a year prior.
With $59.7 billion in revenue for the quarter, Apple CEO Cook boasted about the company’s agility to navigate the business during challenging times. Cook cited factors like a strong iPhone SE launch, continued economic stimulus, and the lifting of shelter-in-place restrictions in some areas for the record quarter.
“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 Cook. “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.”
The company reported $46.7 billion of sales in hardware and $13.16 billion in services.
Apple did not yet break out how many units of each product were sold, but earnings across its hardware business — including iPhone, Mac, iPad, and wearables and other accessories were up.
In total across its hardware and services, Apple reported $59.69 billion, up from $53.81 billion from the same quarter a year ago. Apple’s expenditures into research and development, as well as its selling and general and administrative expenses also increased slightly from the same quarter a year ago.
Of note, despite rising trade tensions between the United States and China, Apple’s sales in the Greater China region remained steady, going from $9.16 billion a year ago to $9.33 billion in the most recent quarter that ended on June 27, 2020. In fact, Apple reported sales slightly up across all regions, including the Americas, Europe, Japan, and Asia Pacific.
Apple announced that it had doubled its fiscal 2016 services revenue six months ahead of schedule.
The company also used its earnings report to highlight other social causes and issues that are important to its principles, including a new $100 million Racial Equity and Justice Initiative and a commitment to be carbon neutral by 2030.
Apple will provide more details and insights during its ongoing investor call, and we will update this story as more is announced.
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