Apple Revenue Booms 36% in June Quarter as iPhone Sales Surge, Services Hit Record $17.5 Billion

Tim Cook - Apple

Apple posted $81.4 billion in revenue for the June 2021 quarter, a 36% year-over-year leap, on better-than-expected iPhone sales and as its services division continued to deliver strong growth.

The tech giant’s iPhone sales hit $39.57 billion in the most recent quarter, up 50%, handily beating analyst expectations of $34 billion, per FactSet. In the first three months of 2021, iPhone sales had increased 66%. Apple CFO Luca Maestri had told analysts in April that the company was expecting a larger-than-usual sequential decline in sales because of supply-chain shortages.

Apple’s services segment, which includes the App Store, Apple Music, iCloud, Apple TV Plus and other products, posted revenue of $17.5 billion — a quarterly record — up 33% from the year-ago period.

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Apple’s strong sales for the June quarter, the tech giant’s fiscal third quarter 2021, represented a record for its FYQ3. The company reported a net profit of $21.74 billion, up 93% from the year-earlier period, or earnings per diluted share of $1.30. Apple’s global installed base across all devices stands at an all-time high. The company disclosed in January that its installed base had reached 1.65 billion.

On average, Wall Street analysts expected $72.93 billion on the top line and EPS of $1.00.

Apple CEO Tim Cook noted the record quarter and other positive signs such as the fact that almost all of Apple’s retail stores have reopened from pandemic shutdowns in his remarks to Wall Street analysts. Apple’s gross margins this quarter exceeded 40%, which led to superlatives and congratulations from analysts.

Demand for Apple products was strong around the world, notably in India, Latin America and Vietnam, Cook said.

At the same time, Cook observed, “progress made is not progress guaranteed.” He noted that latest wave of COVID-19 spikes in the U.S. and other markets has led to “an uneven recovery — the pandemic has shown us once again the road to recovery will be a winding one.”

Apple’s blowout quarter was buoyed by double-digit growth across its business units and in all of its geographic sectors. But Maestri was clear with analysts that the company doesn’t expect the level of iPhone sales and other activity to be as strong in the current quarter and that revenue growth would be less robust than the quarter ended June 30.

Cook noted that iPhone is getting a boost from the growing availability of 5G wireless technology for mobile device users. “We’re only in the early innings of 5G and already its incredible performance and speed have made a significant impact on how customers can get the most out of our technology,” Cook said. He later reiterated that 5G penetration around the world remains “very low” and thus represents an opportunity for Apple.

The Apple chief also referenced the haul of 35 Emmy nominations raked in earlier this month by the Apple TV Plus service. He cited “Mythic Quest” as a top title and touted the prospects of Apple’s Sundance acquisition “CODA,” which he called “groundbreaking.” And he made special mention of this year’s Emmy darling, Apple TV comedy “Ted Lasso,” which was showered with 20 noms.

“Of course, ‘Ted Lasso’ kicked off Season 2 just last week. It continues to win over viewers with its heartwarming message about the power of community, compassion and hope,” Cook said.