Apple's Q3 2020 financial results surprise — 2022
COVID-19 is undoubtedly causing a significant slowdown in the world economy caused by the reduction in consumption. At first Apple is one of the companies that should have been affected, but the financial results of Q3 2020 have left many with their mouths open. In this article we will tell you all the details about this new quarter.
Apple surprises with good financial results
Although we all might have thought that Apple's financial results for the months of May, April and June were going to be catastrophic, the reality has been very different. As reported by the company itself during Q3 2020 entered 59,700 million dollars which represents an increase of 11% compared to the same quarter last year. This is obviously an incredible figure as they have reported more income compared to a month where there was no health emergency. For the more purist people who prefer to analyze the total benefits that Apple has generated once all expenses have been removed, there is also good news. In the quarter of last year, a profit of 10,044 million dollars was generated, but this year it has been greater than 11,253 million dollars.
|Q3 2020 (billions of dollars)||Q3 2019 (in billions of dollars)|
|Wearables, Home and Accessories||6,450||5,525|
If we go into the details of this presentation, we see how all product categories have grown in revenue. Obviously with regard to iPhone we are in a few months where the big question is whether to wait until September or buy a new device, and that is why we do not see spectacular revenues. Likewise, the growth is quite positive and marks an upward trend that benefits the company. Mac has also seen good growth of over billion Dollars, something that is interesting to analyze. Lately the Mac has not had a very good growth, quite the opposite. Sales have been decreasing due to the trend that the market is following to acquire more and more iPads to avoid having to pay the high price of the company's computers.
Service is one of the categories that has grown the most in income, almost two billion dollars. The problem is that there is no clear breakdown indicating what each of the services has entered. We have been aware that Apple TV + or Apple Arcade are not generating the expected income . According to different information, most of the income comes from the App Store and also from the sale of licenses. The latter may be at risk because of the investigations that are open against Apple for alleged monopolistic policies.
With regard to the category that includes the Apple Watch and other accessories, there is also a slight growth. This is logical since we have seen how Apple's smart watch is having an incredible reception because of its implications in the field of health.
Europe leads economic growth
If you start to analyze the income analyzed by the different regions of the world, Europe is the one that has grown the most. It has grown from more than 2 billion dollars despite being a content that has been greatly affected these months by the different health policies of restriction and confinement. Surely online orders have been largely responsible for saving this fiscal quarter. In America in general there has also been a good growth of two billion dollars. On this continent we must observe Q4 2020 in detail since these months are where more cases of COVID-19 are occurring.
|Q3 2020 (in billions of dollars)||Q3 2019 (in billions of dollars)|
|Rest of Asia Pacific||4,199||3,589|
China is one of the company's target markets and where they have invested a lot of money in different campaigns to boost sales. The result seems to be quite positive, although we will have to wait for much more stable health months. TheiPhone SE2it may have been partly to blame for this growth. We must remember that in China they seek to renew their equipment without spending a lot of money on the update. That is why models such as the iPhone 11 or the XR have worked wonderfully.
Investors satisfied with the results
Apple investors have responded in a very satisfactory way to these financial results. If we go to the market value of the company's shares, we see significant growth after the markets closed. The share price could easily exceed $400, something that should be very satisfying within Apple as it consolidates its value.
Tim Cook has also stated how happy he is with these financial results in these times of uncertainty that the market is experiencing right now. He specifically has stated the following:
Apple's record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments. In times of uncertainty, this performance is a testament to the important role our products play in our customers' lives and to Apple's relentless innovation.
The economic results of the next fiscal quarter will undoubtedly set another great precedent to see how Apple has evolved in the pandemic. In Q2 2020 we saw how they also continued to present a slight growth in revenue of 1%, and now it has exceeded 10% growth. This suggests that without a doubt online sales and also the attractiveness of the company's products have meant that the COVID-19 crisis does not affect too much.