Daily Management Review

Apple Easily Beats Quarterly Estimates In Cvoid-19 Times, But Delay In New iPhones


Apple Easily Beats Quarterly Estimates In Cvoid-19 Times, But Delay In New iPhones
With people working and learning from home amid stay at home orders and lockdowns to prevent the spread of the novel coronavirus pandemic and turning to its products and services, United States based tech giant Apple Inc comfortably beat estimates for its quarterly performance with year on year revenue gains in virtually every product category of the company and in every geographic area.
The performance easily beat expectation of Wall Street even in some of the categories that have been doubted on by analysts such as iPads and Macs, which also showed improvements in growth.
Apple expects that its iPhone sale will continue to show strong performance into the next quarter but there will be delay in launch of new models, said the company’s Chief Financial Officer Luca Maestri on a conference call with investors.
“Last year, we started selling new iPhones in late September. This year, we project supply to be available a few weeks later. We expect the rest of our products categories to have strong year-over-year performance,” Maestri said.
The company reported iPhone sales of about $4 billion above the estimates of analysts for the quarter. On the same day as the company reported its estimate beating performance, a collapse of 32.9 per cent in annualized rate in U.S. gross domestic product for the last quarter was reported. That was the worst economic performance since the Great Depression in this aspect for the U economy.
Some of the other Silicon Valley based tech giant such as Amazon.com Inc and Facebook Inc also easily beat analysts’ expectations.
With iPhone revenues of $26.42 billion, which was $4 billion more than what the analyst were expecting at $22.37 billion, according to IBES data from Refinitiv, Apple reported that about 60 per cent of its sale were accounted for by the the Cupertino, California-based company’s international markets.
Sales had started to pick up in May and June after disruptions in April, which was also helped by Apple’s “strong” launch of the $399 iPhone SE introduced in April, company’s CEO Tim Cook said in an interview to the media.
“I think the economic stimulus that was in place - and I'm not just focused on the U.S., but more broadly - was a help,” Cook said.
According to some analysts, the performance of the company amid the pandemic also underscores that the products and services offered by Apple are such that consumers flocked to them despite some of them being re-closed in some US markets. A growth in sale of Apple’s accessories such as AirPods and services such as the App Store were also reported by the company during the latest ended quarter. 
The strength and durability of the company's brand was also highlighted by the continued growth in services and accessories of Apple. Investors have viewed Apple to be a relative safe haven which has propped up its share prices since March.
The company also saw strong sales in its greater China region, where aggressive pricing during a June holiday shopping season and lower-priced iPhone SE model released in April helped boost sales 2% to $9.33 billion from $9.16 billion a year earlier.
Apple did not give a fiscal fourth-quarter forecast.