Apple (AAPL) reported strong fiscal third-quarter earnings exceeding Wall Street estimates. Every one of Apple’s major product lines grew over 12% on an annual basis and iPhone sales increased nearly 50% on an annual basis.
Key Q3 Highlights:
- EPS of $1.30 reported versus $1.01 estimated.
- Revenue grew 36% year-over-year with $81.41 billion versus $73.30 billion estimated.
- iPhone revenue stood at $39.57 billion versus $34.01 billion estimated, an increase of 49.78% year-over-year.
- Services revenue of $17.48 billion reported, beating expectations at $16.33 billion estimated, up 33% year-over-year.
- Other Products revenue grew $8.76 billion, up 40% year-over-year.
- Mac revenue also increased 16% year-over-year with $8.24 billion versus $8.07 billion estimated.
- iPad revenue stood at $7.37 billion, beating estimates at $7.15 billion estimated and up 12% year-over-year.
- A gross margin of 43.3% versus 41.9% expected was reported.
- The company again did not provide formal guidance for the sixth quarter in a row due to the Covid-19 pandemic.
- Apple also had a strong quarter in its Greater China region which includes, Taiwan and Hong Kong. Apple reported $14.76 billion in sales in the region, up 58% from the same quarter last year.
- Americas sales were up nearly 33% year-over-year to $39.57 billion.
- Apple now has 700 million paid subscribers, up 150 million year-over-year, Cook said. Apple’s subscriber figure includes customers subscribed to an app through Apple’s App Store billing.
The iPhone maker witnessed growth despite lockdowns around the world. As people not only upgraded their old iPhones but also Android customers bought their first iPhone. Apple CEO Tim Cook expresses that the company’s quarter could have been even better if it had not grappled with supply shortages likely linked to the global chip shortage, that mostly affected its Mac and iPad sales.
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it. To learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page.
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