Despite the coronavirus pandemic, big tech companies haven’t stopped making massive piles of money. Apple announced its earnings for the April-June time period last night, and the $2 trillion company had another record quarter on its books.
Here’s what we learned from it:
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 most successful 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 numbers more 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 also registered significant percentage growth year-on-year.
3. Chip shortage effects are real
Apple’s CFO, Luca Maestri, had warned in April that the global chip shortage could 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 production took an impact because 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 by 2% in after-hours trading.
4. Apple’s services business is going strong
Apple began its services 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. CFO Maestri 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 as lossless and spatial audio on Apple Music, iCould+ for added security, and new Apple Wallet features like coupon code storage.