iPhone sales fuel Apple’s Wall Street-beating Q3

Another excellent quarter for Apple, as the company posted $81.4 billion in revenue. That’s a 36% year-over-year jump for the company, besting Wall Street estimates of $73.3 billion by a considerable margin.

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

Some strong figures for the company all around here, but it was iPhone sales and subscription services that continued to lead the way — a familiar story for anyone who’s followed the company the last several quarters.

iPhone sales increased from $26 billion to $39.5 billion, on the continued strength of the company’s long-waited push into linewide 5G, while services rose from $13.1 billion to $17.5 billion for the quarter. Apple has continued to grow its services offerings, which now includes Music, TV+, iCloud, Arcade, News+ and Fitness+. The company clearly sees the subscription portfolio as the future of its revenue model.

Greater China proved a strong market for the company in the third fiscal quarter. The company posted $14.76 billion in sales for the region, a more than 50% increase over the same time last year. The Americas region, meanwhile, rose from $ 27 billion to $35.89.

In the earnings report, CEO Tim Cook made reference to pandemic-related issues, which highlighting broader societal focuses for the company.

“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 Tim Cook, Apple’s CEO. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.

The company once again declined to offer guidance, owing to uncertainties during the pandemic. On a followup call with investors, however, Maestri noted, “We expect revenue growth to be lower than our June Quarter.” The CFO cited various issues including a slow down in the growth rate of services, as well as continued supply chain issues for its hardware offerings.

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