Record profits for “Apple” thanks to the iPhone .. A strong warning leads to a decline in the stock

Record profits for "Apple" thanks to the iPhone .. A strong warning leads to a decline in the stock

Shares of Apple Inc fell up to 2.9% in late trading on Tuesday after warnings that sales growth could slow and supplies tighten, curbing investor appetite after a record-breaking third quarter has been

The company said in a conference call yesterday that the supply restrictions would affect iphone phone and iPad in the current quarter. Due to slowdown in demand for services, its business will decline. Apple declined to provide specific revenue forecasts.

The cautious comments came on the heels of $81.4 billion in revenue, up 36% in sales in the third quarter, beating Wall Street’s estimate of $73.8 billion. But investors are sticking to a wait-and-see attitude, as parts shortages and COVID-19 restrictions continue to hit Apple’s business this year.

The warnings come despite sales of the iPhone, Apple’s core product, up nearly 50% in the fourth quarter to $39.6 billion, topping expectations of $34.6 billion. The third quarter is typically Apple’s slowest period — consumers wait for new phones to launch around September — but the iPhone 12’s 5G technology has helped the company reverse that trend.

The company reported net income of $21.74 billion, or $1.30 per share, in the third quarter of the fiscal year, up from $11.25 billion, or 65 cents per share, a year earlier. Analysts tracked by FactSet had expected earnings of just $1.01 per share.

The company is expecting “strong” double-digit growth in the fourth quarter.

“The record operating performance for the quarter ended June includes new revenue in each of our geographic segments,” Chief Financial Officer Luca Maestri said in a statement. He said Apple continues to make significant investments to support long-term growth, and generate $21 billion in operating cash flow, and return $29 billion to shareholders during the third quarter.

See also  Smartphone: To prevent being tracked, here are 5 essential tips from the NSA

performance restrictions

Apple reported $7.37 billion in iPad revenue, or 12% growth, beating expectations of $7.13 billion. Apple also introduced new models of the iPad Pro in April, but the line was restricted due to problems with making new screens for the larger models.

For the Mac, Apple reported revenue of $8.24 billion, or 16% increase, topping Wall Street analysts’ estimates of $8 billion.

Apple had previously warned that a lack of chips affecting some components of the iPad and Mac would hit third-quarter revenue. Third-quarter earnings were $1.30 per share, compared to estimates of $1.01 per share.

Services revenue was $17.5 billion, higher than estimates of $16.3 billion and a third more than the same period last year.

About the author: Seth Grace

Seth is an all-around geek who loves learning new stuff every day. With a background in Journalism and a passion for web-based technologies and Gadgets, she focuses on writing about on Hot Topics, Web Trends, Smartphones, and Tablets.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *