Last updated: 01 Nov, 2021 | 07:48 am
Revenue: Apple has reported $83.36 billion in revenue up 29% year-over-year but still below street estimates. Analysts had estimated revenue of around $84.85 billion. Revenue in the same quarter last year stood at $64.7 billion. Revenue fell short of Wall Street expectations due to larger-than-expected supply constraints on iPhones, iPads, and Macs.
Segment revenue: Apple products have performed well during the year but the sales were below street expectations. iPhone revenue was up by 47% on year to $38.87 billion, below street estimates of $41.51 billion.
The strongest growth in Apple product categories aside from iPhones was in its services business, which includes sales from the App Store, music and video subscription services, advertising, extended warranties, and licensing. Services revenue rose 25.6% on year to $18.28 billion compared to $17.64 billion estimated by analysts.
Apple’s Other Products category, which includes Apple Watch and AirPods models, grew 11% without new products, which went on sale in October. Other Products revenue came in at $8.79 billion, however, this was below the street estimate of $9.33 billion.
Mac revenue was at $9.18 billion, in line with the street estimate of $9.23 billion. Apple’s Macs did not grow strongly, only increasing 1.6% annually, but the quarter did not include sales of new MacBook Pro models that were announced in October. iPad revenue rose 21.4% on year to $8.25 billion, above street estimate of $7.23 billion.
Income and margins: The net income for the quarter ended September rose 62.2% on year to $20.5 billion compared to $12 billion in the same period last year. Earnings per share was in line with street estimates of $1.24. Operating income and margins: Apple has reported an operating income of $23.8 billion, up 61% on year. Gross margin for the quarter was 42.2%, compared to 38.2% in the year-ago quarter.
Apple Q4 earnings review:
Apple is currently in the middle of massive growth as sales of iPhones, iPads and Macs exploded during the pandemic. Apple’s annual revenue for its fiscal 2021 was also up 33% from 2020 to $366 billion. However, due to supply related issues the sales growth for the sep quarter was below street estimates.
The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia. Apple hasn’t provided official guidance since the start of the pandemic, but Cook said Apple will face worse supply constraints, higher than the $6 billion hit to revenue in the September quarter. Still, Apple says that its December quarter will be the company’s largest in terms of revenue in its history.
This quarter marks the first time since April 2016 that Apple has failed to beat earnings estimates, and it’s the first time since May 2017 that Apple’s revenues have missed estimates, according to Refinitiv data.