10-QPeriod: Q3 FY2021

Apple Inc. Quarterly Report for Q3 Ended Jun 26, 2021

Filed July 28, 2021For Securities:AAPL

Summary

Apple Inc.'s Q3 2021 (ended June 25, 2021) report showcases exceptional financial performance, with total net sales surging 36% year-over-year to $81.4 billion. This growth was broad-based, with all product and service categories experiencing significant increases. The iPhone remained the primary revenue driver, showing a remarkable 50% increase in sales, highlighting the strong demand for newer models. The Services segment also demonstrated robust growth, increasing 33%, underscoring its increasing importance to Apple's overall business. Profitability also saw substantial improvement, with net income more than doubling to $21.7 billion, translating to a diluted EPS of $1.30. The company continued its aggressive capital return program, repurchasing $22.5 billion of its common stock and paying $3.8 billion in dividends. Apple's strong financial position, robust revenue growth across key segments, and effective capital allocation strategies indicate continued strength and shareholder value creation.

Financial Highlights

55 data points
Beta

Revenue

$81.43B

43.3% Gross Margin

Net Income

$21.74B

26.7% Net Margin

EPS (Diluted)

$1.30

Total Assets

$329.84B

Cash & Equivalents

$34.05B

Free Cash Flow

$19.00B

Financial Statements
Beta
Revenue$81.43B
Cost of Revenue$46.18B
Gross Profit$35.26B
R&D Expenses$5.72B
SG&A Expenses$5.41B
Operating Expenses$11.13B
Operating Income$24.13B
Interest Expense$665.00M
Net Income$21.74B
EPS (Basic)$1.31
EPS (Diluted)$1.30
Shares Outstanding (Basic)16.63B
Shares Outstanding (Diluted)16.78B

Key Highlights

  • 1Total net sales increased by a significant 36% year-over-year to $81.4 billion, driven by growth across all product and service categories.
  • 2iPhone sales experienced a substantial 50% increase year-over-year, indicating strong demand for new models.
  • 3Services revenue grew by 33% to $17.5 billion, further solidifying its role as a key growth engine for Apple.
  • 4Net income more than doubled to $21.7 billion, with diluted earnings per share rising to $1.30.
  • 5The company repurchased $22.5 billion of its common stock and paid $3.8 billion in dividends, demonstrating a strong commitment to returning capital to shareholders.
  • 6Geographic segments all showed robust year-over-year net sales growth, with Greater China experiencing an impressive 58% increase.
  • 7Gross margin percentage improved significantly to 43.3% from 38.0% in the prior year's comparable quarter.

Frequently Asked Questions

Apple's total net sales for the third quarter of fiscal year 2021 (ended June 25, 2021) were $81.434 billion, representing a substantial increase of 36% compared to $59.685 billion in the same period of the prior year.

Revenue growth was broad-based across all categories. The iPhone saw the largest increase at 50%, followed by Services at 33%, Wearables, Home and Accessories at 36%, Mac at 16%, and iPad at 12%.

Apple's profitability improved significantly. Net income rose from $11.253 billion in Q3 2020 to $21.744 billion in Q3 2021. Diluted earnings per share increased from $0.65 to $1.30.

Apple continued its aggressive capital return program. In the third quarter of 2021, the company repurchased $22.5 billion of its common stock and paid dividends and dividend equivalents totaling $3.8 billion. This aligns with their ongoing share repurchase program and commitment to increasing dividends annually.