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Apple posts a record June quarter thanks to iPhone sales

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apple (AAPL) on Tuesday announced a massive surge in earnings over the three months ended June 26, thanks to a jump of almost 50% year-on-year IPhone sales up to $ 39.6 billion. The company posted 36% total quarterly revenue, up $ 81.4 billion, a record for the June quarter and nearly $ 8 billion above analysts ’expectations.

“This quarter, our teams have built a period of unparalleled innovation by sharing powerful new products with our users, at a time when the use of technology to connect people everywhere has never been so important,” he said. Tim Cook in a statement.

The June quarter is usually the slowest time of the year for Apple and some analysts worried, until the beginning of the report, that the company would face tough comparisons year after year for hardware sales, as that the pandemic generated strong demand for Macs and iPads this time. last year. Others were concerned that the global shortage of chips could cause a slowdown in sales of Apple products.

But Apple’s results suggest it will remain strong, although conditions on the Covid-19 have improved in many parts of the world. The company recorded double-digit revenue growth in each of its product categories.

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During the quarter, Apple announced a redesigned iMac and a new iPad Pro, both made with Apple’s internal M1 chip. Although the new design of the iMac was controversialCook said during Tuesday’s earnings call that the new product helped boost Mac revenue to a record June quarter. Chief Financial Officer Luca Maestri added that the last four quarters have been the best in Mac sales, thanks to the success of the M1 chip.

“Apple reported another solid quarter, highlighting the company’s brand durability,” Jesse Cohen, a senior analyst at Investing.com, said in an email. “IP phones were the main engine of growth, suggesting that consumers continue to upgrade to 5G.”

Apple may also have been helped by a larger portion of its customers who opted to buy the high-end versions of the iPhone 12, Apple’s first 5G phone to be unveiled last fall.

Services, an area of ​​Apple’s business that has become increasingly important in recent years, also grew strongly during the quarter. With nearly $ 17.5 billion in quarterly sales, services generated the second highest revenue of any product category behind the iPhone.

In Tuesday’s earnings call, Apple executives declined to provide revenue guidance for the September quarter, but said they expect a slower revenue growth rate than during the June quarter, due to the impacts of currency and supply restrictions affecting iPhone and iPad. Maestri also said the year-on-year growth rate of services is likely to decline after the June quarter rate benefited from a comparison with last year’s fall in service sales due to the pandemic.

Shares of Apple fell more than 2% in after-hours operations after results.

As Apple’s business continues to boom even though the economy as a whole has been hit hard, the company has faced growing regulatory control that could throw a key turn on its business.

House lawmakers last month proposed one antitrust billboard this, if passed, could severely alter Apple’s business model and that of other tech giants. In particular, a bill could harm Apple’s ability to charge a 30% commission from developers for all purchases made since the implementation of its operating system, a practice also in question in an ongoing legal battle between Apple and video game developer Epic. Another could open the door to third-party app stores on the iPhone.

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