Business Sales Keep Rising at a Rapid Pace
The Cupertino-based company said it earned $1.40 per share to easily exceed the $0.99 per share expected from the surveyed market analysts, the Refinitiv data shows. Business sales came in at $89.59 billion, again higher than the $77.36 billion expected. This marks a year-over-year (YOY) jump of 53.7%.
“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” Tim Cook, CEO of the company, said in a press release.
Its biggest business unit based around the flagship iPhone smartphone lineup delivered $47.94 billion in revenue to mark an immense growth of 65.5% YOY. This compares to the Wall Street consensus of $41.43 billion. iPhone sales are a closely-watched metric and one of the key drivers behind a surge in Apple stock price.
Apple Services business unit reported sales of $16.90 billion vs. $15.57 billion expected. The company said it generated $9.10 billion from Mac sales to crush the $6.86 billion expected from market analysts.
The Mac business unit even managed to surpass iPhone growth rate as it soared over 70% YOY. Cook said that Mac sales were “fueled by” the introduction of its Mac laptops that use its own M1 chips and have a longer battery life.
“We’re seeing strong first-time buyers on the Mac … it continues to run just south of 50%,” Cook told CNBC.
Business sales of iPads garnered $7.80 billion for the tech company to smash the $5.58 billion consensus among surveyed analysts and to mark a 78.9% YOY growth rate.
Cook added that the company now serves more than 660 million paid subscriptions across all business sectors, from 620 million reported in the prior quarter, another piece of information that pushed Apple stock to trade higher today.
He described the App Store as an “economic miracle.”
“Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States (US), but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident.”
Other products that have helped bump business revenue, which include Apple Watch, AirPods, and others, rose 24% YOY to $7.83 billion. Overall, gross margin soared to 42.5% from 39.8% a year ago.
Region-wise, the tech company recorded immense growth across all regions, led by the Greater China region, which garnered a growth rate of 87% YOY. China, along with the US, is a key market for the tech company and its iPhone product. Apple stock is known to be sensitive to any China-related developments affecting the tech company.
Apple didn’t offer guidance for its fiscal Q3, as well as for full 2021. It previously cited uncertainty related to the pandemic for not providing forward-looking statements.
Apple stock is up about 3% in early trading as it moves toward record highs set above the $145.00 handle.
Strong demand for iPhone and other products yielded a blowout Q2 for Apple. As a result, Apple stock is trading higher in pre-open Thursday.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.