Apple beats Q3 estimates as iPhone sales rocket

By Raffaele Redi

Pandemic boosts tech giant as Apple posts a June quarter record revenue of $81.4bn

The pandemic has fuelled Apple’s fortunes as the tech giant posts a June quarter record revenue of $81.4bn, up 36% year-on-year, driven by a jump of almost 50% in iPhone sales and good performance in the Americas.

The company witnessed quarterly earnings per diluted share of $1.30 for its fiscal 2021 third quarter ended 26 June, beating estimates.

Tim Cook, Apple's CEO, said: “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.”

Income rockets

The firm’s Q3 net income rocketed to $21.7bn, compared to $11.3bn the previous year.

“We generated $21bn of operating cash flow, returned nearly $29bn to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans,” said Luca Maestri, Apple’s CFO.

Apple’s board of directors has confirmed a cash dividend of $0.22 per share.

iPhone sales soar

iPhone sales soared in Q3, with the company posting a $39.5bn income compared to $26.4bn in the same period last year, as the firm launched the higher-end version of its iPhone 12, Apple's first 5G phone.

Mac purchases amounted to $8.2bn compared to $7.0bn the previous year, with iPad sales almost stable at $7.3bn, compared to $6.5bn in the same quarter in 2020.

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America performs well

The tech giant also witnessed strong performance in the Americas, with sales leaping to $35.8bn, compared to $27.0bn the previous year.

Europe and Greater China saw sales growth as well, increasing by around $4bn each, to $18.9bn and $14.7bn respectively.

“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 Luca Maestri, Apple’s CFO.

Stock trading low 

Investors are waiting for the company’s response to the European Commission and United States Department of Justice observations on competition.

There is more than one case underway in Brussels regarding App Store practices and music payments.

One of the main cases follows up on concerns raised by music-streaming providers who directly compete with Apple Music, including a complaint filed by Spotify.

“The Commission's preliminary view is that Apple's rules distort competition in the market for music streaming services by raising the costs of competing music streaming app developers,” said the European Commission.

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Further reading: Google sees advertising revenue increase by 69%

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