4 things we learned from Apple’s bombastic earnings call
iPhone sales grew by 50%
1. This was Apple’s most profitable spring quarter
What’s an Apple quarterly result with the words “the most profitable quarter ever” in some context? Apple earned $81.6 billion in revenue (up 36% year-on-year), and recorded $21.7 billion profit.These numbers make it the mostsuccessful April-June quarter in the company’s history.
2. The iPhone 12 is a hit (and other hardware is also doing well)
Apple stopped reporting iPhone sales numbersmore than two years ago. However, the company said that it registered a 50% growth in sales year-on-year with more people buying computing devices in the pandemic. The total worth of those sales? A whopping$39.6 billion.
As per Apple’s quarterly result sheet, other hardware categories, including Mac, iPad, and Home and Wearables alsoregistered significant percentage growthyear-on-year.
3. Chip shortage effects are real
Apple’s CFO, LucaMaestri, had warned in April thatthe global chip shortagecould hurt sales by around $4 billion. However, the number ended up being less than $3 billion. In April, the company had said that iPad and Mac productiontook an impactbecause of the chip shortage.
But the company issued a caution, that because of this global problem, the growth rate might not be sustainable. This resulted in Apple shares dipping by2% in after-hours trading.
4. Apple’s services business is going strong
Apple began itsservices push in 2019, and it’s seemingly paying off. The firm registered $17.9 billion in revenue in the last quarter with a massive 33% growth. CFOMaestri said that more than 700 million people are paying for Apple’s services that include, Apple Music, iCloud, Apple Arcade, and Apple TV+.
In the last quarter, the company introduced new offerings such aslossless and spatial audio on Apple Music, iCould+ for added security, and new Apple Wallet features like coupon code storage.
Story byIvan Mehta
Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.“Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.”
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