Late yesterday and when the markets were closed, Apple again announced record financial results. The fiscal third quarter of 2021 generated gross revenue of $ 81,434 million and net profit of $ 21,744 million. In this traditionally weakest quarter of the year, Apple broke its record over these three months.
The company also far exceeded investor expectations, with the iPhone being the main protagonist during this period.
Record revenues and profits with an iPhone on the run
Apple generated almost as much revenue this quarter as it did in the best of the previous two years. In the first quarter of 2019, it got $ 84,310 million compared to the current $ 81,434 million.
The contrast is obvious, as we compare the best time of year, when Christmas coincides with a new iPhone, with the quarter that has the “worst” performance, which is the one immediately preceding a new generation of iPhone.
Revenue increased 36.4% year-over-year, while profits rose 93.2% to $ 21,744 million, almost double the previous year. Individually, the growth of Apple’s segments has been as follows:
iPhone: 49.8%. Growth of clothing, home and accessories: 36%. Benefits: 32.9%. Mac: 16.3%. iPad: 11.9%.
Tim Cook noted that 5G is still taking its first steps, as it has just started its deployment around the world. Additionally, the strong growth of the iPhone has been driven by renewals among existing users and the addition of new Android users (the so-called switches).
The split between iPhone revenue and the rest of the business balances out again, slightly relative to the terminal. In recent years, Apple has succeeded in reducing its dependence on the iPhone by offering a series of more robust and attractive products and services. But the iPhone continues to rule over each of them individually.
The company said it expects strong demand for the iPhone in September. Without saying it directly, they’re hoping to launch the new generation iPhone 13 (or whatever the name is) in the same month, so we’re back on the usual schedule of the pre-coronavirus pandemic.
If we look at the growth in the iPhone and other segments, we see how particularly strong the last quarter is. It is striking that these growths have occurred in the context of a global shortage of chips since the end of 2020. Tim Cook assured that they only see a certain tension in the manufacture of chips of previous generations.
Everything seems to indicate that Jeff Williams and the entire operations team were able to solve or at least mitigate the worst effects of this silicon shortage. The real litmus test will take place in September and beyond, as strong demand for the new generation of iPhone is expected.