Examining Apple's record-breaking $59.7B June quarter by the numbers

Apple significantly exceeded all industry expectations with its latest results, and did so with a quarter that featured closed stores and coronavirus lockdowns affecting the supply chain.

In a regular quarter, before the coronavirus, what would generally happen is that Apple would indicate that it expected to make between X and Y billion dollars. Analysts would then say no, Apple is wrong, and either it will be more or it will be less.

Then what usually happens is Apple would announce its results and they would invariably be exactly within the range the company had indicated. But it was not an ordinary neighborhood.

Apple said it was uncertain enough about its fortunes during the coronavirus outbreak to first withdraw its forecast released in January. Then he did not come out at all for this last quarter.

Faced with the lack of informationon from Apple itself, analysts must analyze, and each investment bank and research group have therefore calculated what should be the profits. Each of them was wrong, even though each of them expected a positive result showing Apple was overcoming its COVID-19 issues.

Apple Year-on-Year Comparison of Revenue and Net Profit

Katy Huberty of Morgan Stanley was the closest to being right. While the average of all analysts projected $ 51.47 billion, it came out on one branch and said it would be $ 55.1 billion. But even that wasn’t fair, as Apple came in at $ 59.7 billion.

“We recognize that these results are a stark relief at a time of real economic adversity for businesses large and small, and certainly for families,” said Tim Cook during the call on the financial results of the company. ‘business. “We don’t have a zero-sum approach to prosperity, and especially at times like this, we focus on growing the cake, making sure that our success is not just our success and that everything we do, build or do is geared toward creating opportunity. for others. ”

Income and net profit

June is typically Apple’s weakest quarter, simply because of the much higher sales that come with the holiday season, back-to-school promotions, and especially the iPhone launches that come towards the end of September. the year. This remained the case in 2020, but the June quarter still saw higher-than-usual earnings.

Credit: Malcolm Owen

Credit: Malcolm Owen

“[In an uncertain environment], Apple posted a quarter of historical results, demonstrating the important role our products play in the lives of our customers. “Said Cook.” We set a record for the June quarter with revenue of $ 59.7 billion, up 11% from last year. ”

This 11% year-on-year growth comes despite the fact that June 2019 also posted a record revenue of $ 53.8 billion.

“Products and services set records for the June quarter and grew in double digits and revenues increased in each of our geographic segments, reflecting the broad base of success,” Cook continued.

“As always, and especially in times of real adversity, what makes us proud as a company is not just what we did, but how we did it,” he continued.

Gross margin

Along with the increase in overall revenue, Apple’s gross margin increased 12.1% to $ 22.68 billion from $ 20.2 billion year-over-year. Costs have also increased, with Apple recording operating expenses of $ 9.6 billion, an increase of 10.4% from the $ 8.6 billion in the second quarter of 2019.

While Apple isn’t breaking down its costs, this year is notable for how the company continued to pay its retail staff while its Apple Stores were closed. For the month of June alone, analysts estimate that meant a total global wage bill of $ 200 million.

Credit: Malcolm Owen

Credit: Malcolm Owen

Some products

Apple’s latest iPhone SE was announced in the previous financial quarter, but it was only released during this one. Earlier reports of high demand leading to supply shortages appear to have been supported by product revenue figures.

Apple iPhone Quarterly Revenue

Apple iPhone Quarterly Revenue

Still, iPhone remains Apple’s biggest cash cow and the company reported that iPhone revenue grew 2% in this quarter. “In April, we expected a deterioration in performance year over year,” Cook said, “but we saw better than expected demand in May and June.”

This demand saw Apple’s iPhone revenue soar 1.7% last year. This represents $ 26.4 billion in Q3 2020, compared to $ 25.98 billion in 2019.

Comparison of Apple Products and Services

Comparison of Apple Products and Services

Likewise, iPad revenue grew 31% year over year, reaching $ 6.6 billion from $ 5.02 billion in 2019. For the Mac, the latest figures are 7 , $ 1 billion, up 21.6% from 2019. Much of this could be attributed to the sudden increase in the number of people working from home.

Apple iPad revenue

Apple iPad revenue

This clearly caused an initial spike in MacBook Pro sales. However, sources in the supply chain subsequently suggested that demand had not declined as quickly as expected.

Apple Mac figures including MacBook Pro

Apple Mac figures including MacBook Pro

Wearables, home and accessories

Perhaps more surprising than an increase in demand for MacBook Pro models has been how Apple’s broad category of portable devices, home and accessories fared. Its net sales were $ 6.45 billion for this quarter, compared to $ 5.525 billion last year.

That’s a 16.7% increase, but it comes at a time when even Apple expected wearable devices, in particular, to be lower. While Apple does not divide the figure further, so there is no way to determine sales of Apple, AirPods, etc., the company believed wearable devices would be hit the hardest by the impact of the COVID-19.

“I think that in particular, like the iPhone, [was] affected by store closures, ”Cook said,“ because some people want to try it out and see what it looks like. [They want to look] to different choice of groups and that sort of thing, and so I think the store closures put more pressure on that. ”

“We knew things were going to slow down because of the closures,” he continued. “So we ended up being very happy with the way we did. But store closures are definitely affecting portable devices and the iPhone.

Clothing is down from last quarter, but up year over year

Clothing is down from last quarter, but up year over year

CFO Luca Maestri made the same point. “Lockouts and closings of point of sale teams were rampant in April and impacted our performance,” he said. “[However,] we saw very strong double-digit growth from the iPad Mac and portable devices. ”


The reason for the store closings, the health pandemic that forced everyone to stay at home, meant that Apple services were expected to benefit. As it has consistently done quarter after quarter, Services has grown.

Growth in services year on year

Growth in services year on year

This time, it was a growth of 14.8% to a turnover of 13.2 billion dollars. That’s a pretty typical percentage increase for services, but it was significant this time around because it meant Apple had taken a big step forward.

“We are proud to report that we have achieved our goal of doubling our service revenues for fiscal 2016,” said Cook, “six months ahead of schedule”.

Apple for the future

Analysts may have been about as inaccurate as ever in their specific earnings forecasts, but they were all positive about the health of the company. And their repeated expectation that Apple will position itself well for the future seems well founded.

“[The] The June quarter is a testament to Apple’s ability to innovate and execute during tough times, ”Maestri said. Our results demonstrate the resilience of our business and the relevance of our products and services to the lives of our customers. ”

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