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10-QPeriod: Q3 FY2020

Apple Inc. Quarterly Report for Q3 Ended Jun 27, 2020

Filed July 31, 2020For Securities:AAPL

Summary

Apple Inc. reported strong financial results for the third quarter of fiscal year 2020, reflecting continued resilience and growth despite the ongoing COVID-19 pandemic. Total net sales saw an 11% increase year-over-year, reaching $59.7 billion, driven by robust performance across product categories and services. Net income also grew to $11.3 billion, resulting in diluted earnings per share of $2.58. The company demonstrated broad-based growth, with significant contributions from its Services segment, which grew 15% year-over-year. Product sales also saw a notable rebound, with Mac and iPad sales increasing by 22% and 31% respectively. This performance highlights Apple's ability to adapt to changing consumer behaviors and maintain strong demand for its ecosystem of products and services.

Financial Statements
Beta
Revenue$59.69B
Cost of Revenue$37.01B
Gross Profit$22.68B
R&D Expenses$4.76B
SG&A Expenses$4.83B
Operating Expenses$9.59B
Operating Income$13.09B
Interest Expense$697.00M
Net Income$11.25B
EPS (Basic)$0.65
EPS (Diluted)$0.65
Shares Outstanding (Basic)17.25B
Shares Outstanding (Diluted)17.42B

Key Highlights

  • 1Total net sales increased by 11% year-over-year to $59.7 billion for the third quarter of fiscal 2020.
  • 2Net income grew to $11.3 billion, or $2.58 per diluted share.
  • 3Services revenue experienced a strong 15% year-over-year increase, reaching $13.2 billion.
  • 4Product sales showed significant growth, with Mac sales up 22% and iPad sales up 31% year-over-year.
  • 5The company repurchased $16.0 billion of its common stock and paid $3.7 billion in dividends.
  • 6Despite the COVID-19 pandemic, demand improved throughout the quarter across all product categories and Services.
  • 7Gross margin percentage remained strong at 38.0%, with Services gross margin significantly higher at 67.2%.

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