Stay-at-Home Demand Drives Apple Growth

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Apple reported sales growth across all its products, with iPads and Mac computers in particular benefiting from the shift to working and learning from home.

Apple’s overall sales rose 11{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} in the third quarter to $59.7 billion and profits increased 12{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} to $11.25 billion. Earnings came in at $2.58 per share.

Analysts had expected earnings of $2.04 per share on $52.3 billion in revenue.

“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,” Apple CEO Tim Cook said in a news release.

On news of the earnings, Apple shares rose 6.4{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} to $409.55 in after-hours trading even though the company also announced that its latest iPhones will be shipped slightly later than usual this year as the coronavirus disrupts global supply chains.

As CNN reports, “Apple has thus far managed to weather the [coronavirus] pandemic,” even launching several new products and services virtually in the midst of global lockdowns.

iPad sales rose 31{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} to $6.6 billion in the third quarter and Mac computer sales were up more than 21{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} to nearly $7.1 billion as consumers stayed home to work, learn and socialize.

Even the iPhone, whose slowing production in China prompted Apple to warn investors about the coronavirus in February, generated $26.4 billion in sales, up more than 1{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} from the same time a year ago. It was only the second time in the past seven quarters that the iPhone, which is still Apple’s flagship product, has posted sales growth.

Revenue from the wearables segment, which includes the Apple Watch and AirPods, grew 16.7{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} to $6.5 billion while services, including Apple Music and Apple TV Plus, posted a gain of 14.8{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca} to $13.2 billion in revenue.

“Our products and services are very relevant to our customers’ lives, and in some cases, even more during the pandemic than ever before,” CFO Luca Maestri told The New York Times. He noted, however, that Apple could have made several billion dollars more if not for the pandemic.