Apple revenue at record high with stock split agreed

Apple

Apple, which has begun to reopen stores in the coronavirus pandemic, has made the most money in the third quarter in its history.

Apple reported US$59.7 billion in revenue, representing an 11% increase from the year-ago quarter and ridiculing analyst estimates in a period where the world is deeply impacted by the coronavirus pandemic. Apple also announced its plans to give investors three additional shares of Apple per share already owned at the end of August as part of a 4-1 stock split.

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Tim Cook, Apple CEO, in a media release. “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. This is a challenging moment for our communities, and, from Apple’s new US$100 million Racial Equity and Justice Initiative to a new commitment to be carbon neutral by 2030, we’re living the principle that what we make and do should create opportunity and leave the world better than we found it.”

Apple
Apple iPhone 11 with its three camera lenses and bigger battery. It also contains U1.

Apple traditionally releases a new iPhone in late September but Apple Chief Financial Officer Luca Maestri said on a call with analysts that Apple expects iPhone supply to be delayed for a few weeks.

“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times,” said Maestri. “The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories. We grew EPS by 18% and generated operating cash flow of US$16.3 billion during the quarter, a June quarter record for both metrics.”

Apple’s Board of Directors approved the four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on 24 August, 2020 will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on 31 August, 2020.

This is Apple’s fifth stock split since it went public. It also split on a 7-for-1 basis on June 9, 2014; a 2-for-1 basis on February 28, 2005; a 2-for-1 basis on June 21, 2000; and on a 2-for-1 basis on June 16, 1987, CNBC reported.

Related posts