Apple recently published its earnings report for the third quarter of 2021, ending in June. At the earnings call, the company’s CEO Tim Cook said that Apple saw “double-digit” growth for switchers and upgraders in the Q3. The company reported an impressive $81.4 billion in revenue across products and services for the third quarter of 2021 with 36 percent year-on-year growth. iPhone sales grew by 50 percent, generating $39.6 billion in sales.
Earlier reports stated that iPhone 12 sales are strong despite the launch of the iPhone 13. Strong iPhone 12 demand made analysts revise their revenue estimates and AAPL share price, ahead of the Q3 2021 earnings report.
June quarter was Apple’s largest upgrade Q3 ever
Responding to a question by Cross Research analyst, Shannon Cross on lessons learnt from the current iPhone cycle about customers’ preferences and pricing, Mr. Cook reiterated that iPhone sales were “very strong” worldwide making Q3 the largest upgrade quarter for Q3 ever.
We’ve you know, if you look at our results in Q3, Shannon, we had strong double digit growth for switchers and for upgraders. And in fact, it was our largest upgrade quarter for a Q3 ever. And and so we feel really, really great about both categories. And as Luca kind of said during the preamble, our opening comments, our results are really strong for iPhone around the world. And so it’s been a very, very strong cycle. And yet we’re the penetration on 5G is obviously still very, very low. And so we feel really good about the future of the iPhone.
In his opening statement, Mr.Cook accredited the success of the iPhone to innovative technology; A14 Bionic chip delivering fast performance, 5G network delivering fast upload and download speeds with a new gaming experience on the smartphone, and major camera upgrades of the smartphone.
Having said that, Apple expects lower revenue growth in the upcoming fourth quarter of 2021, than the June quarter, because of the possible impact of the prevailing global chip shortage on iPhone and iPad sales. Read the complete report here.