Apple posts record earnings in this quarter. Reason is iPhone
On July 27, Apple announced its financial results for the third quarter of FY 2021 that ended on June 26. The company claims that its quarterly revenue of $81.4 billion marks a 36 percent year-on-year increase. Remarkably, all Apple product segments including iPhone, Mac, iPad, services, and wearables, home, and accessories witnessed a year-on-year increase in revenue. Here are more details.
Company's net income nearly doubled amid global pandemic
Despite pandemic-induced part shortages and logistical difficulties, Apple has invested substantial efforts in its product line-up. The efforts appear to have paid off if the company's financial figures are anything to go by. Apple reported that the company's net income nearly doubled. This year Apple saw $21.7 billion in net income, a 93 percent increase from last year.
iPhone sales witnessed 50 percent year-on-year increase
Among all the product categories that Apple dabbles in, historically, the iPhone line-up has been the most significant contributor to the company's income. This year was no different. The iPhone range alone contributed $39.6 billion to the company's $81.4 billion total revenue. This marks a 50 percent year-on-year increase for the product category mostly fuelled by the iPhone 12's success.
Services segment, accessories wing also record increase in revenue
The company's services segment recorded a relatively modest $17.5 billion in revenue that represents a 33 percent increase. Engadget reported that this division makes twice as much money as any other Apple division, with the obvious exception of the iPhone. Meanwhile, the Cupertino giant's wearables, home, and accessories group grew 36 percent and racked up $8.8 billion in revenue.
Mac sales clocked $8.2 billion revenue
The wearables, home, and accessories group is responsible for the Apple Watch, AirTag, and the HomePod Mini, among other products. Apple's revenue from Mac sales saw a meager 16 percent year-on-year increase to $8.2 billion. This isn't stellar growth, but the increase can be attributed to Apple's daring transition to M1 silicon. Meanwhile, revenue from iPads accounted for $7.4 billion.
M1 powered iPads could continue Apple's iPad revenue growth
The revenue from iPads witnessed a 12 percent uptick compared to last year. We speculate that Apple could witness strong gains in this segment soon, with more M1-powered iPads in the offing. CEO Tim Cook also addressed the investors and presented the earnings report at 2:30 am IST on July 28. Apple live-streamed the event. It can be re-watched for around two weeks.