Apple’s net profit increased 12 per cent year-on-year to $11.25 billion (Dh41.28bn) in the company's fiscal 2020 third quarter ended June 27, as earnings across all categories of products and in every geography surged.
The results topped analyst estimates and increased the share price by 6.44 per cent to $409.5 in trading after-hours.
iPhone sales grew 1.6 per cent to $26.42bn in three months from the year earlier period. Strong sales in other parts of the business, such as services and wearables, meant the US technology company posted quarterly revenue of $59.7bn, an increase of 11 per cent from the year-ago quarter.
“Apple’s record June quarter was driven by double-digit growth in both products and services and growth in each of our geographic segments,” Tim Cook, Apple’s chief executive, said.
“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,” said Mr Cook.
Apple sold more iPhones, iPads and computers that led to a rise in earnings, according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“App Store services saw a record demand during the pandemic,” she added.
Ending speculations about the possible delay in the launch of the upcoming iPhone 12 series, Apple confirmed it is planning to launch the new iPhones later this year.
“Last year we started selling new iPhones in late September, this year we expect supply to be available a few weeks later,” said Luca Maestri, the company’s chief financial officer, in an earnings call with investors.
Apple, which has regularly launched new models every September, is facing production delays due to supply chain disruptions amid the coronavirus outbreak, Bank of America analysts said earlier this year.
According to Apple, its global sales – outside the US market – accounted for nearly 60 per cent of the company's total third-quarter revenue.
It gained more number of consumers in Europe that has been a stronghold for the company in the past. Its input grew more than 18.9 per cent year-on-year in the third quarter of this year, contributing $14.17bn of total sales.
Despite the US-China trade frictions, Apple managed to earn some new ground in the Greater China market (mainland China, Hong Kong and Taiwan), which contributed $9.32bn, an annual increase of almost 2 per cent.
“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times,” said Mr Maestri, adding, “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.”
The Cupertino-based company has also approved a 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 August 24, will receive three additional shares for every share held … and trading will begin on a split-adjusted basis on August 31,” the company said.
This is Apple's first share split since 2014. Splitting their stocks is a tactic for firms to make it less expensive to buy individual shares, potentially attracting retail investors who make small trades.
Other major tech companies, including Amazon and Facebook, also posted soaring results that topped Wall Street targets, sending their shares up.
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In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
About Krews
Founder: Ahmed Al Qubaisi
Based: Abu Dhabi
Founded: January 2019
Number of employees: 10
Sector: Technology/Social media
Funding to date: Estimated $300,000 from Hub71 in-kind support
UAE currency: the story behind the money in your pockets
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Dolittle
Director: Stephen Gaghan
Stars: Robert Downey Jr, Michael Sheen
One-and-a-half out of five stars
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
Key developments in maritime dispute
2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
