What's going on?

Smell that? That�s the sweet smell of Apple cooking up better-than-expected quarterly results late on Thursday � results that were very much to investors� liking.

What does this mean?

The last three months have been something of a rollercoaster for the US�s second-biggest public company. Apple warned investors back in February that its revenue would fall short of expectations after China responded to coronavirus with factory shutdowns � and as the pandemic spread across the globe, the tech giant shuttered its stores and saw demand for its products drop off rapidly. By April, however, its suppliers had already become more optimistic about the rest of the year.


Analysts could�ve used some of that glass-half-full chutzpah: Apple�s revenue last quarter surprised them by coming in higher than a year ago, despite 7% fewer iPhone sales (tweet this). What�s more, the company�s services revenue � from its music, magazine, and video streaming subscriptions � rose by a higher-than-expected 17%, likely thanks to a literally captive audience. And partly because that segment of its business is more profitable than its hardware segments, Apple�s profit beat forecasts too.

Why should I care?

For markets: This doesn�t normally happen. Honest.

With the launch of its new iPhones delayed, there�s still a lot Apple doesn�t know about how its year will pan out. So even though things picked up in April, the company � unusually � didn�t offer a forecast for this quarter. It did, on the other hand, announce a $50 billion increase in its share buyback program, along with a higher-than-expected dividend. That lucrative boost might keep investors who are faced with the unknown from selling their shares � especially since several other big companies have recently paused their payouts.

The bigger picture: Intel outside.

Apple reportedly plans to start selling Macbooks using its own microchips from next year, rather than existing supplier Intel’s. That lost income is bad news for Intel, but it should boost Apple�s profit from computer sales � assuming prices stay stable or increase � as there�ll be fewer middle-men taking a cut of Apple�s revenues.