When Apple released its results, it brought positive surprises regarding the numbers for the quarter. Analysts had expected about $52,3 billion in revenue and earnings per share of $2,07, but Apple beat those forecasts with $59,7 billion in revenue, up 11% from last year's third quarter and EPS of $2,58, an increase of 18%.
The company announced a four-for-one split along with the earnings, saying that "each registered Apple shareholder at the close of business on August 24, 2020 will receive three additional shares for each share held on the record date."
As has become the norm, Apple's services and wearables divisions performed strongly. But the iPhone, Mac and iPad also did well during the third quarter.
With the updated 13-inch MacBook Pro released in the spring, the entire MacBook lineup has now switched to more reliable keyboards and left the controversial "butterfly engine" design behind. This has likely only helped the already high demand for computers and tablets as remote work continues for many people.
This was the first quarter to consider sales of the second generation iPhone SE, which is Apple's cheapest iPhone with a starting price of $399. iPhone sales were particularly sluggish in the first three weeks of April, according to a Bloomberg interview with Apple CEO Tim Cook, but picked up afterward.
The company is expected to announce a new lineup of "iPhone 12" devices in early fall, including a device with a 5,4-inch screen that should appeal to consumers looking for a smaller phone with the same screen design as larger ones.
When asked about the new ones, Apple said the new iPhones were coming, but we'd have to wait. "A year ago, we launched the new iPhone at the end of September," they said. "This year, the delivery of the new product will take place a few weeks after that."
Rumor has it that this will be the year Apple will bring 5G to some iPhones, although there have been reports that 5G models may ship after the usual September launch window.
Other products announced for release this year or early next year include Apple's premium-brand headphones, a redesigned iMac, the first Macs with Apple-developed in-house processors and a Tile-like tracking device, and more.
Apple has already revealed many of the new software features for iOS 14, iPadOS 14, macOS Big Sur, watchOS and tvOS, with public betas now available for most updates.
Apple's earnings report comes a day after Cook testified alongside fellow Big Tech executives Jeff Bezos, Sundar Pichai and Mark Zuckerberg as lawmakers continue to investigate potential antitrust violations and whether big companies now wield too much power.
