Despite analysts anticipating a revenue for Q3 2021, around $73.3 billion, Apple completely blew past that number. In the company’s Q3 2021 earnings report, Apple earned a record-breaking $81.4 billion in revenue. While that’s an impressive number in itself, Apple also shared a year-over-year growth of almost 40% compared to Q3 2020.
iPhone sales sky-rocketed, providing an increase of more than 50% compared to last year, thanks to a revenue of $39.6 billion. iPad and Mac sales also rose compared to Q3 2020, with iPad sales providing $7.6 billion, and Mac revenue coming in at $8.2 billion.
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,” said Tim Cook, Apple’s CEO.
While hardware is Apple’s bread and butter, the company has been making a concerted effort in the “services” department. Apple Services include things like Apple Music, TV+, the Apple One subscription bundle, and of course, iCloud, amongst others. For Q3 2021, Apple Services earned $17.5 billion, a 33% year-over-year increase from $13.2 billion.
Rounding out the bulk of Apple’s revenue came via the Wearables, Accessories, and Home area of the company’s portfolio. This also saw a dramatic increase compared to Q3 2020, resulting in $8.8 billion in revenue for a 36% increase.
Supply Constraints Are Coming
Despite seeing revenue of $39.6 billion, and the iPhone 13 (or 12s on the horizon), Apple is trying to temper expectations for Q4 2021. According to Luca Maesteri, Apple CFO, the company is expecting supply constraints to begin affecting iPhone and iPad availability.
What we don’t know is whether these constraints will only apply to the iPhone 13, or will encompass the current lineup of iPhone 12 phones. As for the iPad, we weren’t expecting too much of an update to the line, but perhaps the oft-rumored iPad mini 6 will finally be revealed.
The Mac Isn’t Dead
Just last year, there was some cause for concern when it comes to the Mac lineup. Apple had not issued a real meaningful update to the product line, other than the extremely-expensive Mac Pro (which was long overdue). However, thanks to the M1 chip, the Mac and iPad have also seen a resurgence according to the Q3 2021 earnings.
Apple CEO Tim Cook stated that the iPad “had its best June quarter in nearly a decade”, meanwhile “the Mac set a new June quarter revenue record”. CFO Luca Maestri followed up Cook’s statement by claiming that the “last four quarters have been the Mac’s best four quarters ever”.
Given that Q3 2021 included by the release of the 24-inch M1 iMac and M1 iPad Pro models, it should come as no surprise that sales and revenue were up. What should come as a surprise is that even with the global chip shortage affecting everyone, Apple still blew its predictions out of the water.
The Apple Watch Continues to Grow
Although Apple already has a more than sizable lead in the smartwatch market, the Apple Watch continues to grow in popularity. Along with the HomePod, AirPods lineup, Beats headphones, and AirTags, the Apple Watch helped account for $8.8 billion in revenue. This is a 36% increase from the $6.5 billion in revenue from the same quarter last year.
But the most impressive aspect of this is that Apple CEO Tim Cook stated that almost 75% of those who purchased the Apple Watch in Q3 2021 were “new to the Apple Watch”. That’s an absolutely staggering percentage given that we haven’t seen a new Watch released since late last year. While Google and Samsung are working together on a new wearable operating system for Android, it’s clear that the companies have their work cut out for them.
Andrew is a freelance writer based on the East Coast of the US.
He has written for a variety of sites over the years, including iMore, Android Central, Phandroid, and a few others. Now, he spends his days working for an HVAC company, while moonlighting as a freelance writer at night.