Apple reported another strong quarter for iPhone sales while the chip shortage impacted iPad revenue
Apple CEO Tim Cook said in a statement, “We saw a very strong double digit increases in both upgraders and switchers during the quarter.” The chip shortage affected Apple’s iPad sales which the executive mentioned in his statement. “The shortage primarily affected Mac and iPad. We had predicted the shortages to total $3 to $4 billion. But we were actually able to mitigate some of that, and we came in at the lower than the low end part of that range.”
Cook added that “This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect
people everywhere has never been more important. We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in theurgent work of building a more equitable future.”
Sales in the Greater China region soared 58.2% to $14.76 billion from last year’s $9.33 billion. Gross in the Americas totaled $35.87 billion which worked out to a 32.8% increase on an annual basis. The three other regions reported by Apple (Europe, Japan, and the Rest of Asia Pacific) also had year-over-year gains during the fiscal third quarter.
Apple doubled its earnings per share in the quarter
Overall, total revenue for the fiscal third quarter amounted to $81.43 billion vs. $59.69 for the same quarter last year. That is a 36.4% gain for the year and wipes out Wall Street predictions of $73.30 billion. Net earnings amounted to $21.74 billion compared to 11.25 billion registered during the fiscal third quarter in 2020, a 93.2% hike. Earnings per share on a diluted basis came to $1.30 doubling the 65 cents reported last year.
Apple’s shares barely reacted compared to past post-earnings report movements. The stock closed at $146.77 for a loss of $2.22 (-1.49%) during regular trading on Tuesday with a further decline of $1.66 (-1.13%) in after-hours trading. The company continued its practice of not making any formal guidance for the current quarter because of the pandemic. But CFO Maestri said that the company expects to report double-digit year-over-year growth in revenue for the fiscal fourth quarter.