In Q3 2020, Apple saw significant profits in the most populous country in the world, China. The tech mogul generated a revenue of $9.3bn there for the company’s third fiscal quarter ending in June. That is an increase of 1.9% year-on-year.
This performance can be attributed to a glorious rise in iPhone and iPad sales, along with revenue generated from services like AppStore and Apple Music. Apple services and the iPad saw record sales in June, according to the company.
Apple CEO Tim Cook, speaking about Q3 reports, said, “iPad was helped in June there (China) by work from home and distance learning, as it was in other geographies. And services set a new June record there”.
Even though Apple was forced to close its stores due to the Covid-19 pandemic, iPhone sales skyrocketed in the June quarter. Apple sold 13 million iPhones in the April-June quarter, up 62% year-on-year. This was a 225% growth from Q1 2020 sales of the iPhone – 4 million. The significant rise in sales is because of the cheaper iPhone SE as well as the discounts on the popular iPhone 11.
Speaking about the Mac and the iPad, Tim Cook said, “We also continue to see extremely high new customer rates on Mac and iPad there. To give you a perspective, about three out of four customers that are buying the Mac are new in China and about two out of three that are buying the iPad are new. And so these are numbers that we’re super proud of.”
Apple stock split 4:1
Apple’s Board of Directors has approved a four-for-one stock split. It means that for every Apple share bought by an investor, they receive three more shares. This also makes Apple stocks more affordable at approximately $100/share. They are currently trading at $380 per share.
This is Apple’s fifth stock split since it went public. In 2014, Apple split its stocks at 7:1, when they were trading at over $600, making every share cost $92.
The shares will be distributed to shareholders at the close of business on August 24, and trading will begin on a split-adjusted basis on August 31.
iPhone release delayed
According to a report published by MacRumors, Apple is expected to launch the new iPhone later than usual this year. CFO Luca Maestri said that they would be “available a few weeks later.”
Qualcomm also said that there would be a “slight delay” of a “flagship phone launch” in the fourth quarter, which corresponds with the time when Apple unveils the new iPhone.