Apple Posts Record Results But Warns The Party May Be Over
Apple has shattered Wall Street estimates, by posting a sales gain of 36 per cent in the June quarter, with revenue of $81.4 billion.
The company soared above Wall Street’s $73.8 billion estimate, and even outpaced its own estimates that third-quarter earnings would slow to $1.01 a share, instead hitting $1.30.
Apple’s iPhone sales grew a whopping 50 per cent, to earn $39.6 billion during the June quarter, shattering the $34.6 billion projections. iPad revenue grew 12 per cent to $7.37 billion, again topping $7.13 billion projections, but suffering from supply issues with the larger model screen production. Mac sales grew 16 per cent to $8.24 billion, well exceeded the $8m estimate.
Apple’s wearables, home, and accessories sector grew 36 per cent, in line with the company as a whole. This includes Apple Watch sales, plus Apple TV, the discontinued HomePod, and AirPods.
Even Apple’s services revenue leaped above expectations, reaching $17.5 billion against Wall Street predictions of $16.3 billion – despite cutting its cut on in-app purchases and third-party app downloads from 30 per cent to just 15. Its retail stores reopened in June, providing some late quarter heft to the numbers.
Despite all this good news, Apple shares dropped 2.9 per cent in late trading, after the company warned that sales growth may slow following this quarter, with the company warning investors on a conference call yesterday that supply shortages will begin to hit this quarter.
Apple has ceased giving revenue forecasts during the pandemic, but its caution seems unfounded.
The company has the announcement and release of the new generation of iPhone, while it is heavily rumoured that new AirPods will be released at the same time, a property that hasn’t been updated since 2019.
Despite the warnings, Apple expect “double digit growth” in the current quarter.
“Our record June quarter operating performance included new revenue records in each of our geographic segments,” Chief Financial Officer Luca Maestri said in a statement.
“Apple continues to make significant investments to support long-term growth, generated $21 billion of operating cash flow, and returned $29 billion to shareholders during the third quarter,” he added.