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Apple sees profit nearly double as iPhone sales boom

Apple Inc. just posted its strongest June quarter ever, with a near doubling of profits and a huge revenue beat for its iPhone business.

The company posted fiscal third-quarter net income of $21.74 billion, or $1.30 a share, up from $11.25 billion, or 65 cents a share, a year earlier. Analysts tracked by FactSet were expecting earnings per share of $1.01.

Apple’s
AAPL,
-1.49%

revenue for the quarter rose to $81.43 billion from $59.69 billion, while analysts had been anticipating $73.34 billion. The biggest positive surprise came in the iPhone segment, which exceeded revenue expectations by more than $5 billion.

The smartphone giant delivered $39.57 billion in iPhone revenue, up from $26.42 billion a year prior and far ahead of the FactSet consensus, which called for $34.19 billion.

Shares were up 0.7% in after-hours trading.

The company had been seeing strong performances from its iPad and Mac businesses amid the pandemic as the remote-work boom fueled demand for those devices, and Apple posted growth once again in the June period. Apple generated $8.24 billion in Mac revenue for the quarter, up from $7.08 billion a year prior, as well as $7.37 billion in iPad revenue, up from $6.59 billion a year ago. Analysts were projecting $7.86 billion and $7.17 billion, respectively.

Apple saw revenue for its services unit climb to $17.49 billion from $13.16 billion a year ago, above estimates for $16.26 billion. The company posted $8.78 billion in revenue from its wearables, home, and accessories segment. That compares with $6.45 billion a year prior and the $7.83 billion FactSet consensus.

Apple did not issue a financial forecast in its earnings release, in keeping with its approach throughout the pandemic.

Shares of Apple have gained just over 10% so far this year as the Dow Jones Industrial Average
DJIA,
-0.24%
,
of which Apple is a component, has risen upwards of 14%.

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