The company said net income nearly doubled to $ 21.7 billion (£ 15.6 billion) and revenue jumped 36% to $ 81.4 billion in a quarter booming in which sales of all of its major product lines increased.
The iPhone, which accounts for half of the Silicon Valley giant’s sales, grew 50% year-on-year in the quarter through June, continuing a solid advance for the iPhone 12 that Apple launched on the last year. It came as Google and Microsoft released record financial results, continuing big tech’s winning streak in the pandemic.
Tim Cook’s business flourished during the pandemic as consumers turned to his devices while working and learning from home, and thanks to a redesign of his most popular products.
As the numbers approached, analysts feared that the global microchip shortage, which has spread beyond cars to consumer devices, could affect the supply of Apple’s Mac and iPad computers.
However, sales of both were higher than a year ago. Revenue from its Mac line, which Apple revived with chip designs from Britain’s Arm, rose 16 percent. IPad sales rose 12%, while accessories such as the Apple Watch rose 36%.
Apple faces a growing regulatory challenge for its increasingly lucrative digital services division, which includes the App Store and services such as Apple Music. Service revenues jumped 33% to a record $ 17.5 billion, making it Apple’s second largest area after the iPhone.
Competition authorities are increasingly wary of the fees Apple charges app developers for sale through the App Store and have accused the company of giving preferential treatment to its own services. Apple is also awaiting judgment in a lawsuit filed by Fortnite maker Epic Games against its App Store rules.
Apple’s latest iPhones, unveiled last October, were the first to support next-generation 5G mobile networks, an upgrade that has boosted sales this year. Analysts expect the next models, due to be unveiled in September, will come without similar major upgrades.
Google’s parent company Alphabet said its revenue jumped 62% year-on-year to $ 61.9 billion, with profits almost tripling from $ 7 billion to $ 18.5 billion. Shares jumped 3.7 pc after the bell.
This was a sharp rebound from the same period last year, when the search giant reported declining sales for the first time in history as advertising in travel markets and employment froze.
Managing Director Sundar Pichai attributed the rebound to a “rising tide of online activity in many parts of the world.”
Microsoft revealed a 21% increase in revenue to $ 46.2 billion and a 47% increase in profits to $ 16.5 billion, as the software giant’s cloud software and games businesses continue to thrive.
The company, which followed Apple to a $ 2 trillion valuation earlier this year, was spurred by increased demand for its online Office software, with many workers stuck at home.