The
California tech giant's profit rose to $21.7 billion on growth in iPhone sales
and its increasingly important digital services.
Revenue
surged 36 percent from a year ago to $81.4 billion, the best ever for the tech
titan's fiscal third quarter.
"This
quarter saw a growing sense of optimism for consumers in the United States and
around the world, driving renewed hope for a better future," chief
executive Tim Cook told a conference call.
"We
are especially humbled that our technology has continued to play a key role in
keeping our customers connected."
Cook said
an easing of pandemic lockdowns helped boost consumer spending in many parts of
the world, with Apple benefitting from that.
He
maintained that Apple can continue to grow as consumers seek new devices for
superfast 5G wireless networks.
"We're
only in the early innings of 5G, but already its incredible performance and
speed have made a significant impact on how people can get the most out of our
technology," he said.
"Customers
love iPhone 12 for its superfast 5G speeds."
Apple
shares were little changed in after-market trading following the results, which
were stronger than most forecasts.
Revenue
from iPhone sales jumped some 50 percent and posted increases for its services
such as digital payments, music, streaming television and gaming.
The results
come with Apple and other tech giants facing heightened pressure from antitrust
enforcers around the world for their dominance of key economic sectors, which
has increased during the pandemic.
'Gold
medal'
Scott
Kessler of the research firm Third Bridge said Apple was able to keep its
momentum despite the global shortage of semiconductors, and sustained its
growth in services, which have been important in diversifying its revenue
stream.
The chip
shortage "didn't seem to impact iPhone sales, which rose 50 percent,"
Kessler said in a research note.
"A
major theme for the company over the last couple of years has been the
emergence of services offerings and related revenues. Services accounted for
more than 20 percent of revenues and have been a source of consistent
growth."
Daniel Ives
at Wedbush Securities said Apple delivered stronger-than-expected results which
should help boost share prices.
"Overall
we would characterize this as a 'gold medal' performance by Apple during the
quarter especially when considering the chip shortage overhang," Ives said
in a note to clients.
"We
essentially view this quarter as the second-half and the start of the back
stretch of the 5G supercycle and a 'drop the mic' quarter for Apple."
Ives said
Apple showed strength in boosting its services and managed growth globally
including in China.
"While
the chip shortage was an overhang for Apple during the quarter, we believe the
iPhone and services strength in the quarter neutralized any short term weakness
that the Street was anticipating three months ago," he said.
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