For years, Apple seemed to defy the law of large numbers. Its iPhones, already in more than a billion pockets, grew again after the company launched the iPhone 12, which featured a new square design and 5G wireless speeds. Yet with a market value exceeding $ 2.45 trillion, the question Apple constantly faces is whether it can continue to rise.
Tuesday we got a response. In the three months of its fiscal third quarter, the company said it achieved nearly $ 39.6 billion in iPhone sales in the quarter ended June 26, up 50% from the same period. one year ago. Typically, Apple struggled to increase iPhone sales during the summer months before its fall iPhone was revealed as people wait to see the next iteration.
In total, Apple said it made $ 21.7 billion in profits, almost double the amount of last year. That translates into earnings of $ 1.30 per share, up from $ 81.4 billion in overall revenue, itself up 36% from a year ago. It was also well above what analysts expected the company to report, which averaged $ 1 per share in earnings and nearly $ 73 billion in revenue, according to surveys released by Yahoo. Finance.
“This quarter, our teams have built on a period of unparalleled innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” Apple CEO Tim Cook said in a statement. He is expected to discuss the company’s results in more detail on a conference call with analysts later Tuesday.
Apple’s results are the latest example of how tech companies have thrived during the coronavirus pandemic. The iPhone 12 family quickly became a hit with fans, who won so much that the company recorded the highest sales and profits in its history.. People have also turned to Mac computers and iPad tablets for learning and working from home, a trend driving unusually high demand in the tech industry. At Apple, this translated into the highest Mac sales on record. .
Apple’s stock closed more than 1% at $ 146.77 per share, amid a broader market sell-off amid concerns over increasing COVID-19 casesin the United States, could have an impact on the economy. Despite the uncertainty, Apple shares have risen more than 13% so far this year. They continued to fall 0.4% to $ 146.24 after-market.
Other parts of Apple’s business are going smoothly as well. The tech giant made $ 7.4 billion in iPad sales, nearly 12% from the same period a year earlier. The Mac, meanwhile, recorded $ 8.23 billion in sales, up 16% from a year ago. Clothing, home and accessories, meanwhile, jumped 36% to nearly $ 8.8 billion. The company’s profitable service business also grew nearly 33% to $ 17.5 billion in revenue.
Here’s everything we learned from Apple’s conference call with analysts following the release of its results.
It’s not just Apple fans
2:39 PM PT A popular trope about Apple is that its fans are enraged and willing to spend endlessly on the company. To counter this perception, Apple pointed out the number of new people who come to its products. Around the world, for example, the company said that even though the Apple Watch first launched six years ago, 75% of people who bought one in the three months ending in June were new to buying.
Apple hasn’t offered similar data on its phones, but Cook said it’s solid. “We had strong double-digit growth for switches and for upgrades, and in fact this was our biggest quarter upgrade for the third quarter,” he said.
Is the flea shortage not so bad anymore? Or is it worse?
2:31 p.m. PT Apple has warned in the past that the Mac and iPad supply is driven by the number of chips the company can source, creating the possibility that sales may be disappointing at the to come up. Instead, Apple CFO Luca Maestri said the company has managed to set new records despite these issues. “It’s remarkable that the last four quarters for Mac have been the best four of all time,” he said. “This exceptional level of sales success was driven by the very enthusiastic customer response to our new M1 chip-powered Macs, which we recently brought to our newly redesigned iMac. “
Despite “significant” supply constraints during the quarter, he added, “we have also started shipping our new M1 chip-powered iPad Pro and customer response has been outstanding.”
He said supply constraints will be “higher” in the September quarter.
Apple CEO Cook said he was “paying more for freight than we would like to pay,” but component costs continue to fall overall.
“In terms of supply constraints and their duration,” he said. “I don’t want to predict this today. We’re going to be taking it sort of quarter at a time, and as you can guess, we’ll do everything we can to alleviate any circumstances we face. ”
COVID-19 is not just going away
2:11 p.m. PST
Apple’s CEO kicked off the company’s conference call by explaining how much people have turned to his company’s products. But he also noted that despite a positive spring and summer, things could get complicated again.
“As the past 18 months have demonstrated time and time again, progress is not guaranteed and an uneven recovery from the pandemic, and the Delta variant booming in many countries around the world has shown us once again that the road to recovery will be a winding one, ”he said. “As we look forward to more in-person interactions in the future, we are doubling down on innovation and doing all we can to help charter hearts to a healthier, more equitable world. “
While Apple’s business seems to be buzzing, the rest of the world is decidedly less stable. The Centers for Disease Control announced earlier on Tuesday that it was reinstating social masking mandates even among vaccinated Americans, out of fearamong children who cannot yet receive life-saving medicines and those who have chosen not to receive them so far.
Even Apple has already told employees it is delaying plans to return to the office until October at the earliest, mirroring the moves of 2020 when companies began to change their schedules in response to deteriorating conditions.
Analysts and industry watchers will be on the lookout for any sign from Apple regarding the future.