As lockdowns are eased, Apple’s profit nearly doubles.
Apple announced Tuesday that its profit nearly doubled in the most recent quarter, owing to improved consumer spending and a “growing sense of hope” as pandemic lockdowns eased.
The profit of the California tech behemoth increased to $21.7 billion, thanks to increased iPhone sales and the company’s increasingly significant digital services.
Revenue increased 36% year over year to $81.4 billion, the highest quarterly total in the company’s history.
On a conference call, Apple CEO Tim Cook said, “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.”
“We are extremely grateful that our technology has continued to keep our consumers connected.”
An easing of pandemic lockdowns, according to Cook, helped improve consumer spending in many regions of the world, with Apple benefiting.
As people want new products for ultrafast 5G wireless networks, he believes Apple can continue to thrive.
“We’re still in the early stages of 5G, but its extraordinary performance and speed have already had a huge impact on how consumers use our technology,” he said.
“Customers are raving about the iPhone 12’s ultrafast 5G speeds.”
Following the results, which were better than most projections, Apple shares were slightly moved in after-market trade.
iPhone sales increased by 50%, while revenue from services such as digital payments, music, streaming television, and gaming increased as well.
The findings come as antitrust officials around the world are increasing their pressure on Apple and other tech firms for their increased control of key economic sectors during the pandemic.
Despite the global shortage of semiconductors, Apple was able to maintain its momentum, according to Scott Kessler of the research firm Third Bridge, and maintain its expansion in services, which has been critical in diversifying its revenue stream.
In a research note, Kessler stated that the chip shortfall “didn’t seem to have an impact on iPhone sales, which increased by 50%.”
“The rise of services offerings and accompanying revenues has been a prominent focus for the organization over the last couple of years. Services contributed for over 20% of revenue and have been a steady source of growth.”
Wedbush Securities’ Daniel Ives said Apple’s results were better than expected, which should help lift stock prices.
In a note to clients, Ives wrote, “Overall, we would characterize this as a ‘gold medal’ performance by Apple for the quarter, especially when considering the chip shortage overhang.”
“This quarter is essentially what we see it as. Brief News from Washington Newsday.