Apple on Thursday reported “better than expected” third-quarter earnings of $83.0 billion, which CEO Tim Cook acknowledged was also fueled by “June quarter revenue records in both developed and emerging markets with double-digit growth in Brazil, Indonesia and Vietnam, and a near doubling of revenues in India”.
On the earnings call with analysts after the results, answering questions about various factors driving iPhone growth, Cook added: It’s the product and the innovation within the product. who motivate him. Other key variables such as the size of the installed base have seen significant growth. We also set a June quarter record for Switches with strong double-digit growth fueling the additional install base. We continue to execute in some key geographies with low iPhone penetration between Indonesia, Vietnam and India, where we have been doing quite well. The iPhone tends to drive these markets, especially in the early stages of creating the market for Apple products.
Chief Financial Officer Luca Maestri said Apple Services had set “all-time highs in many countries around the world, including the United States, Mexico, Brazil, Korea and India.” Highlighting how enterprise adoption is helping Apple in these markets, he cited the example of Wipro among companies “increasingly investing in Apple products as a strategy to attract and retain talent.” “Wipro, another large mobile enterprise customer, is investing in the MacBook Air with M1 as a competitive advantage when recruiting new graduates globally, thanks to its superior performance and lower total cost of ownership,” a- he explained.
Regarding the overall outlook for the upcoming quarter, Maestri said Apple believes its year-over-year revenue growth will accelerate in the September quarter “despite approximately 600 basis points of impact negative exchange rates from one year to the next”. He said supply constraints are expected to be lower in the next quarter than experienced in the June quarter. “In services specifically, we expect revenue to grow but slow from the June quarter due to macroeconomic and currency factors.”
Cook said the majority of last quarter’s stress stemmed from “COVID restrictions that have occurred, which have resulted in plant closures and plants operating at less than full utilization for some part of the quarter, in some cases, most of the quarter”. Regarding the silicon shortage, Cook said “Stress numbers for the September quarter will be lower than the June quarter.”