The big picture: Apple has been doing well over the past few months — good enough to deliver the best third-quarter financial results in the company's history. In addition to the impressive $81 billion in revenue this quarter, investors wanted to know if the company's growth story was coming to an end. The best answer is that no one knows, but Apple's strategy to focus on improving the iPhone and getting more people to use its services seems to have worked well so far.
Apple is one of several technology companies that reported positive financial results this week, beating Wall Street expectations. Cupertino said it made $81.4 billion in profit for the quarter ending in June, up 36 percent from a year earlier, well above analysts' expectations of $73.3 billion. The iPhone is still the main driver of this market. Apple's total revenue. The company sold enough units to raise $39.6 billion, up nearly 50 percent from last year. As reported by ZDNet, if we assume an average selling price of about $700, that could mean more than 56 million units of the company have been sold. In any case, the iPhone 12 almost quickly reached the 100 million unit stage, so the company may have enjoyed another volume of supercars.
< / Image credit: Jason Snell
Mac sales brought in $8.25 billion, up 16 percent from the same quarter last year and roughly in line with expectations. iPad sales grew 12 percent, but it's still good, to more than $7 billion, which is more than 10 percent of total quarterly revenue.
Apple's chief financial officer Luca Maestri told investors that the Mac and iPad are selling better as a result of the shift to remote work and learning, but in portraying the pandemic as an advantage for the company and its shareholders he has been reluctant. Maestri also explained how Apple has been trying to meet demand due to supply chain constraints, and while the company has been able to cut some over the past few months, the iPad could be damaged in the next quarter.
< / Image credit: Jason Snell
Apple's move to internal hardware engineering has some investors worried, but Maestri says the last four quarters of Mac sales have been the best part of the entire time. The bulk of the "highly responsive customer response" came to new Macs equipped with the M1 chip. “The same was true for the M1 iPad Pro, which was nearly on par with the previous sales peak even as Apple was trying to save enough to meet demand.
Last but not least, and most importantly, Apple's services business grew 33 percent on the year on year basis, and the company now has 700 million paying subscribers - $150 million more than last year, this is the 16th quarter of growth and there is a lot of potential that Apple can get more people to engage with its services in China, where a large percentage of buyers have been For Mac, iPad and Apple Watch are the first customers.
Apple reported $81.4 billion last quarter, despite a lack of chips