Following a strong end to 2020 that saw Apple beat its previous revenue and profit records in the fourth quarter, the world’s most valuable company carried that momentum into 2021. On Tuesday, the iPhone maker reported yet another blowout quarter that saw revenue soar by 36 percent to $81.4 billion in the three months ended June 26, the third quarter of Apple’s fiscal year. Traditionally the weakest quarter for Apple as potential iPhone buyers hold out for the new models that typically arrive in September, this year's June quarter was the strongest ever, nearly doubling the company's previous record in terms of June quarter profit.
Apple posted double-digit growth in each of its product categories, with iPhone, Services and Wearables, Home and Accessories standing out with 50,33 and 36 percent year-over-year growth, respectively. While iPhone sales were driven by the popularity of the re-designed iPhone 12, Apple's first 5G phone, the company's services reached an all-time revenue record of $17.5 billion last quarter, thanks to an ever-growing installed base of active devices and paid subscriptions growing to 700 million across all services.
“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” CEO Tim Cook said. He noted "a growing sense of optimism from consumers in the United States and around the world," but also warned that "progress made is not progress guaranteed," with respect to the uneven recovery from the pandemic and the surging Delta variant.
As the following chart shows, the iPhone accounted for just under half of Apple’s revenue last quarter, with the company’s services now the second largest contributor to overall sales. With net income for the first nine months of its fiscal year standing at $74.1 billion, Apple has already crushed its previous full-year record of $59.5 billion in profit dating back to 2018.