Apple's Stock Split Important to Bring in More Retail Investors
Apple reported earnings after the bell on Thursday, July 30.
Apple posted record earnings in its fiscal third quarter and said it would split its stock 4-for-1 as the tech giant looks to make it “more accessible to a broader base of investors.” This is the first stock split since 2014.
Earnings in the quarter were $11.25 billion, or $2.58 a share, up from $10.04 billion, or $2.18 a share, a year earlier. Analysts predicted profit of $2.05 a share
"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 Apple CEO Tim Cook. “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."
Apple's iPhone revenue was $26.42 billion, above estimates of $22.2 billion. Many of Apple's retail stores worldwide were temporarily closed during the quarter, though some have now reopened at least on a minimal basis.
The company said new iPhones would be delayed "a few weeks," suggesting the handsets will be unveiled in October. Apple Maven Daniel Martins noted that that iPhone transparency was surprising, but the cat was already out of the bag.
Jeff Marks discusses what the stock split means for Apple in the video above.
You can follow Katherine Ross on Twitter at @byKatherineRoss.
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