Apple presented its quarterly accounts corresponding to the third quarter of 2020 on October 29, despite the fact that within Apple’s tax system Q4 2020 is considered. iPhone hasn’t finished shining. We tell you all the details below.
Services and Mac set new revenue record
Humanity remains immersed in a great pandemic due to SARS-COV2. That is why everyone could think that Apple’s economic results were going to be catastrophic but the reality in this quarter has been very different. In the months of July, August and September Apple earned 64,698 million dollars . This translates into a slight increase compared to the same quarter of the previous year where 64,040 million dollars were entered. We must bear in mind that this quarter was not involved in a health crisis, so the improvement can be clearly seen from one quarter to the next, although there are different health problems that in theory should fully affect the accounts. With regard to total benefits, once all expenses have been removed, if there has been a slight decrease. Specifically, it has gone from having a net profit of 13,686 million dollars last quarter to 12,673 million dollars this quarter.
| Q4 2020 (in billions of dollars) | Q4 2019 (in billions of dollars) | |
|---|---|---|
| iPhone | 26,444 | 33,362 |
| Mac | 9,032 | 6,991 |
| iPad | 6,797 | 4,656 |
| Wereables, Home and Accessories | 7,876 | 6,520 |
| Services | 14,549 | 12,511 |
| Total sales | 54,698 | 64,040 |
If each of the products is evaluated in terms of sales, there are some surprises. The i Phone category has suffered a drop in terms of income since in Q4 2019 33,362 million dollars were entered while this Q4 2020, 26,444 million dollars were entered. This can be something totally to be expected since the sales of the new iPhone 12 will enter the Q1 2021 that starts from October. It will be here where you can see if these new Apple teams have worked well in terms of sales. But by what anyone might think, even though iPhone revenue has dropped substantially it hasn’t affected overall revenue. This is because the rest of the categories have been compensating for this drop. This fact is important since Apple little by little stops depending on the iPhone which is undoubtedly very good news.
Services is one of the categories that has increased the most and continues to do so progressively. Similar growth has seen the $ 2 billion Mac or iPad category. This is certainly a great surprise as the Mac category kept decreasing in the market while the iPad was increasing. But now this trend has changed as it has ended up re-emerging.
Europe continues to lead economic growth
In the quarterly results, Apple provides information about revenue by country. Specifically, Europe continues to grow, leading over the rest of the countries with an increase in revenue of 2 billion dollars. It is true that Europe has suffered different confinements and the closure of the Apple Store in a general way, so online sales may have been responsible for the income that has remained in this way.
| Q4 2020 (in billions of dollars) | Q4 2020 (in billions of dollars) | |
|---|---|---|
| America | 30,698 | 29,322 |
| Europe | 16,900 | 14,946 |
| China | 7,946 | 11,134 |
| Japan | 5,023 | 4,982 |
| Rest of Asia Pacific | 4,131 | 3,656 |
| Total | 64,698 | 64,040 |
China is the only country where revenues have decreased by more than 3 billion dollars. This is where much more money has been invested to boost sales but this time it seems that it has not finished working. The people of China may have been waiting to get a refresh now in October with the new iPhones, and the iPhone 12 mini may be one of the best-selling devices in this country right now. In order to see the impact it will finally have, we will have to wait for Q1 2021.
Statements by Tim Cook
Along with the presentation of results through a press release, the CEO of Apple participates in a small podcast to give his own assessment. In general, he has shown to be very satisfied with these results, saying the following:
Apple capped a fiscal year defined by innovation in the face of adversity with a record for the September quarter, led by all-time records for Mac and Services. Despite the continued impacts of COVID-19, Apple is in the midst of our most prolific product presentation period to date, and early response to all of our new products, led by our first line of iPhone with 5G connectivity, it has been tremendously positive. From remote education to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of the moment with creativity, passion, and the kind of big ideas. that only Apple can offer.
In addition, he also made it clear that there are still some products to be presented this year. This may be a clear nod to the launch of new Macs at a hypothetical event on November 17. What has attracted a lot of attention in this quarter is that they have not given any forecasts for next year. This is due to the currently looming instability not daring to make any rough calculations.