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This article was published on July 28, 2021

4 things we learned from Apple’s bombastic earnings call

iPhone sales grew by 50%

4 things we learned from Apple’s bombastic earnings call
Ivan Mehta
Story by

Ivan 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."

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.

The iPhone 12
The iPhone 12

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.

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