Apple reveals channel inventory has fallen as sales rocket

iPhone maker says recent period was its best June quarter ever

Apple has reported its best-ever June quarter despite the impact of the coronavirus pandemic.

Revenue for the three-month period ending 30 June 2020 climbed 11 per cent to $59.7bn, while operating profit was up 13.4 per cent $13bn.

Sales were up across all categories, with even the iPhone returning to growth, but CEO Tim Cook said inventory among channel partners is down as a result of supply constraints.

"We've gotten away from talking about channel inventories," he said, when asked about inventory by an analyst on the earnings call.

"But to give you a perspective sitting here looking at it, on iPhone the inventory is slightly less than it was a year ago and that's I'm saying that at a quarter end point, so at the end of Q3.

"And obviously iPad and Mac are constrained and so both of those are less than they were in the year ago quarter."

Apple also seemingly confirmed that a new iPhone model will be released around the same time.

CFO Luca Maestri said that the device will be launched in Q4 of calendar 2020.

"As you know, last year we started selling new iPhones in late September," he said. "This year we project supply to be available a few weeks later."

Apple did not reveal much on how its B2B business has performed, only to say that its products continue to be in demand in the healthcare sector as the battle against COVID-19 continues.

It also said that it's Apple Business Chat, which generally doesn't receive too much publicity, has seen accelerated adoption after businesses moved their workforces to remote environments.

"Since many call centre employees are currently working remotely, Apple Business Chat has proven an invaluable tool for staying connected with customers," Maestri said.

"This quarter HSBC deployed Apple Business Chat in its US and UK contact centres.

"Apple Business Chat provides a flexible and secured channel for digital banking assistance through a native Apple experience improving the efficiency and experience for both customers and agents."

Apple's share price rose over six per cent in after-hours trading following the results announcement.