Apple quarterly profit nearly doubles to $21.7 bn

DailyTimes  |  Jul 28, 2021

Apple said Tuesday its profit in the just-ended quarter nearly doubled to $21.7 billion on growth in iPhone sales and digital services.

Revenue surged 36 percent from a year ago to $81.4 billion, the best ever for the tech titan’s fiscal third quarter. “This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said chief executive Tim Cook.

Cook said an easing of pandemic lockdowns helped boost consumer spending in many parts of the world, with Apple benefitting from that. “This quarter saw a growing sense of optimism for consumers in the United States and around the world, driving renewed hope for a better future, and for all the innovation can make possible,” Cook told a conference call. “We are especially humbled that our technology has continued to play a key role in keeping our customers connected.” Apple shares were little changed in after-market trading following the results, which were stronger than most forecasts.

The California giant said revenue from iPhone sales jumped some 50 percent and posted increases for its increasingly important services such as digital payments, music, streaming television and gaming. “Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said chief financial officer Luca Maestri.

The results come with Apple and other tech giants facing heightened pressure from antitrust enforcers around the world for their dominance of key economic sectors, which has increased during the pandemic. Daniel Ives at Wedbush Securities said Apple delivered stronger-than-expected results which should help boost share prices. “Overall we would characterize this as a ‘gold medal’ performance by Apple during the quarter especially when considering the chip shortage overhang,” Ives said in a note to clients.

“We essentially view this quarter as the second-half and the start of the back stretch of the 5G supercycle and a ‘drop the mic’ quarter for Apple.” Ives said Apple showed strength in boosting its services and managed growth globally including in China. “While the chip shortage was an overhang for Apple during the quarter, we believe the iPhone and services strength in the quarter neutralized any short term weakness that the Street was anticipating three months ago,” he said.

 

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