Apple’s operating profits increased by $11bn to $24.1bn
Apple (NASDAQ:AAPL) profits soared as the world economy comes away from the pandemic that served to benefit major technology companies last year.
Q3 net sales rose by 36% to $81.4bn compared to the year before, while each location reported record levels of revenue.
Apple outperformed market expectations with its results, as iPhone sales rose by 49.8% to $39.6bn, while Mac and iPad sales increased by 1.3% and 11.9% respectively to $8.2bn and $7.4bn.
The Americas remains Apple’s largest market, from where 44% of its sales were made at a value of $35.9bn.
Greater China saw the biggest increase in sales of $14.8bn, up 58%.
Earnings announced by Apple showed that demand for gadgets and other such products improved recently, suggesting that the American tech giant is reaping the benefits as the world recovers from the pandemic.
The higher sales also mean a 20.2% increase in Research and Development spending, while operating profits increased by $11bn to $24.1bn.
Apple announced a quarterly dividend of $0.22 per share.
Despite the impressive results, Apple shares remained flat in after-hours trading.
Sophie Lund-Yates, Senior Equity Analyst at Hargreaves Lansdown, said:
“The problem with being the best is you risk becoming a victim of your own success. That’s what we’ve seen from the reaction to Apple’s results, where despite an exceptional performance, the market’s response has been somewhat muted.”
“The growth might be slower than last quarter, but you only have to look at the figures to appreciate Apple’s hardly in any trouble, quarterly revenues of over $81bn would put most businesses on the planet to shame. Almost any way you frame this picture, it looks good. That just goes to prove that heavy is the head that wears the crown,” said Lund-Yates.