Apple reported Q3 financial results: here’s what you should know

Apple Inc. (NASDAQ: AAPL) said on Tuesday its profit nearly doubled in the fiscal third quarter as iPhone sales came in significantly better than expected. Shares of the company were still down a little under 2% in extended trading for reasons that Loup Ventures’ Gene Munster explained in his interview with CNBC’s “Fast Money”.

Q3 Financial performance

Apple reported $21.74 billion of net income for the third quarter that translates to $1.30 per share. In the comparable quarter of last year, its net income was capped at $11.25 billion or 65 cents per share.

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The tech giant generated $81.43 billion of revenue – an increase from $59.69 billion last year. According to FactSet, experts had forecast the company to post $73.34 billion in revenue and $1.01 of EPS.

Revenue from individual business segments

Apple’s flagship iPhone brought in $39.57 billion in sales in the recent quarter versus the year-ago figure of $26.42 billion and beating expectations by over $5 billion. Earlier this month, Apple said it will ramp up iPhone production by up to 20%.

Revenue from Mac and iPad printed at $8.24 billion and 7.37 billion, respectively. Other notable figures in the earnings report include $17.49 billion in revenue from the services segment and $8.78 billion from wearables, home, and accessories unit. All segments topped FactSet consensus and noted growth on a year-over-year basis.

Dan Ives’ comments on CNBC’s “Closing Bell”

Commenting on the financial update, Wedbush Securities’ Dan Ives said on CNBC’s “Closing Bell”:

“The China growth story continues to play out on iPhones. Today, you still have up to 30% of the customer base that has not upgraded their iPhones in three and a half years. That’s why we believe this super cycle will extend in 2022. I think the numbers in the Street will go massively higher since Apple is in a position of strength.”

Since the start of the COVID-19 crisis, Apple has refrained from offering future guidance – an approach that it stuck to in its earnings release for the third quarter as well.