iPhone sales increased by 50%, net profit increased by 93%, but Apple’s stock price still fell

Mac and iPad sales set a record for the same period in history.

Just now, Apple released its financial report for the third fiscal quarter (April-June) of 2021, which can be described as “satisfactory” performance:

  • iPhone sales increased by 50% year-on-year
  • Revenue of US$81.434 billion hit a record high
  • Net profit was 21.7 billion US dollars, a year-on-year increase of 93%

But Apple’s stock price still fell more than 2% in after-hours trading.

How is this going?

Unusual second quarter

(The second quarter in the following text is a natural quarter, corresponding to Apple’s third fiscal quarter of 2021.)

Generally speaking, April to June is Apple’s lowest sales quarter of the year, because Apple will release a new iPhone in the third quarter, and users will also take a wait-and-see attitude.

But this time, Apple’s earnings data were much higher than Wall Street’s previous expectations:

iPhone sales increased by 50%, net profit increased by 93%, but Apple's stock price still fell

Since Apple released the iPad Pro equipped with the M1 chip, this year is the second quarter of the iPad’s best sales in the past ten years.

In addition, Apple also released a newly designed colorful 24-inch iMac. The efficiency of the Mac in the second quarter also hit the highest in the same period in history.

The M1 chip’s role in promoting the sales of these two products is self-evident.

iPhone sales increased by 50%, net profit increased by 93%, but Apple's stock price still fell

△ The year-on-year growth rate of each Apple product line (picture from Apple Insider)

Apple’s quarterly performance in the Greater China region is very strong, and it is the region with the largest sales growth. Revenue in this region was US$14.76 billion, compared with US$9.33 billion in the same period last year, a year-on-year increase of 58%.

Chip shortage drags on

Although Apple’s revenue and profit last quarter exceeded Wall Street expectations, Apple’s stock price fell more than 2% after the market.

Apple CEO Cook pointed out the hidden worries in the third quarter.

Cook said that due to chip shortages, Apple’s Mac and iPad sales are limited, mainly due to the shortage of secondary chips made by the old technology used in iPad and Mac. Apple expects the total shortage will reach 300 to 4 billion US dollars.

iPhone sales increased by 50%, net profit increased by 93%, but Apple's stock price still fell

Not surprisingly, Apple will hold a new product launch conference in September. Apple warned that chip supply restrictions may affect its iPhone and iPad sales released in September.

iPhone sales increased by 50%, net profit increased by 93%, but Apple's stock price still fell

Software service growth is not affected by chips. Cook said that Apple now has 700 million paid subscribers, an increase of 150 million year-on-year. But perhaps such rapid growth will not last long.

As the epidemic in the United States is gradually brought under control and many employees are about to return to work, the growth rate of paid services for games, movies, and music may slow down.

Apple’s CFO said that the growth rate of service salespersons is expected to decline this quarter.

He also said that due to exchange rates, slowdown in service business growth, and iPhone and iPad supply constraints, revenue growth in the quarter is expected to be less than 36%.

It’s no wonder that Apple’s performance has been pretty good, but its stock price has fallen again after the market.

Reference link:

[1]https://www.apple.com/newsroom/2021/07/apple-reports-third-quarter-results/

[2]https://www.cnbc.com/2021/07/27/apple-aapl-earnings-q3-2021.html

[3]https://appleinsider.com/articles/21/07/27/apples-mac-and-ipad-sales-break-quarterly-records

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/iphone-sales-increased-by-50-net-profit-increased-by-93-but-apples-stock-price-still-fell/
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