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Apple Crushes Earnings Forecast as iPhone, China Sales Drive Record Third Quarter

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said CFO Luca Maestri.

Apple Inc.  (AAPL) - Get Apple Inc. (AAPL) Report posted much stronger-than-expected third quarter earnings Tuesday as surging iPhone sales and a big comeback in China revenues boosted the tech giant's top and bottom lines.

Apple said profits for the three months ending in June, the tech giant's fiscal third quarter, were pegged at $1.30  per share, up 100% from the same period last year and well ahead of the Street consensus forecast of $1.01 per share. Group revenues, Apple said, rose 36% from last year to $81.4 billion, again topping analysts' estimates of a $73.3 billion tally.

Apple said iPhone revenues rose 49.8% from last year to $39.57 billion, well ahead of the $35.8 billion Street forecast of around 35.8 billion.

Greater China revenues, Apple said, rose 58.2% from last year's pandemic trough to $14.76 billion, while overall services revenues rose 33% to $17.49 billion as the company's installed base of devices topped 1.65 billion.

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“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,” said CEO Tim Cook. “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 the urgent work of building a more equitable future.”  

Apple shares were marked 0.24% lower in extended-hours trading immediately following the earnings release to indicate a Wednesday opening bell price of $146.42 each.

Wearables, home and accessories sales were pegged at $8.78 billion, up 36.1% from last year, while work-from-home dynamics and enterprise demand for laptops helped boost Mac sales by 16.4% to $8.24 billion. iPad revenues rose 12% to $7.37 billion.

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said CFO Luca Maestri. “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.