Apple profit nearly doubles as iPhone sales boom, but company projects growth slowdown

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Apple Inc. conscionable posted its strongest June 4th ever, with a adjacent doubling of profits and a immense gross bushed for its iPhone business, though shares slipped successful the extended league aft the institution projected slower maturation for the existent period.

The institution posted fiscal third-quarter nett income of $21.74 billion, oregon $1.30 a share, up from $11.25 billion, oregon 65 cents a share, a twelvemonth earlier. Analysts tracked by FactSet were expecting net per stock of $1.01.

Apple’s AAPL, -1.49% gross for the 4th roseate to $81.43 cardinal from $59.69 billion, portion analysts had been anticipating $73.34 billion. The biggest affirmative astonishment came successful the iPhone segment, which exceeded gross expectations by much than $5 billion.

The smartphone elephantine delivered $39.57 cardinal successful iPhone revenue, up from $26.42 cardinal a twelvemonth anterior and acold up of the FactSet consensus, which called for $34.19 billion.

Once again, Apple declined to supply a numerical gross forecast for the existent play but offered “directional insights.”

Apple expects “very beardown double-digit” year-over-year gross maturation successful the September quarter, though with a maturation complaint not arsenic precocious arsenic the 36% seen successful the June quarter, according to Chief Financial Officer Luca Maestri. The institution anticipates a little favorable interaction from overseas exchange, a instrumentality to “more typical” maturation for the services business, and a greater interaction from proviso constraints comparative to the June quarter.

Though the institution was capable to bounds the interaction of proviso constraints successful the June 4th specified that the interaction was somewhat beneath the debased extremity of the $3 cardinal to $4 cardinal that executives had primitively projected, Apple expects a higher fig successful the September quarter, with impacts chiefly to the iPhone and iPad businesses.

Chief Executive Tim Cook noted that Apple “is paying much for freight costs than I would similar to pay,” though constituent costs are falling successful aggregate.

Shares were disconnected 2.2% successful after-hours trading.

The institution had been seeing beardown performances from its iPad and Mac businesses amid the pandemic arsenic the remote-work roar fueled request for those devices, and Apple posted maturation erstwhile again successful the June period. Apple generated $8.24 cardinal successful Mac gross for the quarter, up from $7.08 cardinal a twelvemonth prior, arsenic good arsenic $7.37 cardinal successful iPad revenue, up from $6.59 cardinal a twelvemonth ago. Analysts were projecting $7.86 cardinal and $7.17 billion, respectively.

Apple saw gross for its services portion ascent to $17.49 cardinal from $13.16 cardinal a twelvemonth ago, supra estimates for $16.26 billion. The services gross full was an all-time record.

The institution posted $8.78 cardinal successful gross from its wearables, location and accessories segment. That compares with $6.45 cardinal a twelvemonth anterior and the $7.83 cardinal FactSet consensus.

Shares of Apple person gained conscionable implicit 10% truthful acold this twelvemonth arsenic the Dow Jones Industrial Average DJIA, -0.24%, of which Apple is simply a component, has risen upwards of 14%.

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