Apple Posts Revenues of $81.4 Billion in Q2 2021

Posted on July 27, 2021 by Paul Thurrott in Apple with 25 Comments

The world’s largest company delivered commensurate results for the quarter ending June 30, with a net income of $21.7 billion on revenues of $81.4 billion. It was another record quarter for Apple.

“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,” Apple CEO Tim Cook said. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”

The iPhone was once again Apple’s biggest business, with revenues of $35.9 billion, so 49 percent of the firm’s revenues come from this one product. Services were Apple’s second-biggest business, with revenues of $17.5 billion, a new record, and a huge improvement over the $13 billion it delivered a year earlier.

Wearables, Home, and Accessories came in third with $8.7 billion in revenues, while the Mac hit $8.2 billion, and the iPad delivered $7.4 billion. All of Apple’s businesses experienced strong YOY revenue growth.

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” Apple CFO Luca Maestri said. “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”

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Comments (25)

25 responses to “Apple Posts Revenues of $81.4 Billion in Q2 2021”

  1. GT Tecolotecreek

    It's a bit more than "commensurate" for a historically slow quarter.

    The Street consensus was less than 73B while delivering 84B and change.

    The big take away is continued new customer growth:

    50% Mac purchases were new to the platform.

    50% iPad purchases also new to the platform.

    75% Apple Watch new to the product.

    • wright_is

      Yes, I bought a brace of iPads this quarter, we threw out our aging Fire tablets, as they are pretty useless (and slow), when it comes to app choice and iPad is really the only option with (mainly) optimized apps. (Our local newspaper apps is just the iPhone app scaled up, but otherwise, everything we have loaded so far has been optimized for the iPad.)

      I'm still on the fence with regards to the iPhone and new Macs. We currently have a Galaxy S phones, but de-googling them is a pain and I switched to Android, because they were cheaper than iPhones at the time, but nowadays, the high-end phones are just as expensive, if not more expensive.

      When the new iPhone comes out, I will be looking at it very carefully, this time around. If the can get rid of the big eyebrow at the top of the screen... That makes the phone look so old-fashioned, compared to high-end Android phones. I do have an SE as a company phone, but we are only allowed to get email on it, no apps, so it sits in my bag most of the time - at least the battery last 3 - 4 days!

    • bkkcanuck

      Apple's doomed, doomed I say... Apple is doomed!

    • Truffles

      Those first time buyer figures are astonishing. The Apple Watch growth figure is particularly mind-boggling: 75% first time buyers for a product range that's six years old.

      Surely that growth must be the millions of newly affluent consumers in China??

      • wright_is

        Or people who wouldn't have considered it before suddenly getting the "sport" kick and buying into Apple Watch, because the various lockdowns have irritated them and they want to get out more?

        • bkkcanuck

          For the longest time - I never gave the Apple watch a second thought (or a first shot), and I am very much into the Apple ecosystem... just had a long bad history with watches dating back to when I was younger (absolutely destroyed some of the supposedly touch watches that existed at that time)... don't think I ever had a watch last. Not that, I had not worn a watch in maybe 30+ years.

          I bought an Apple watch maybe 18 months ago, and although I would not say I wear it all the time... it is a good device. I use it primarily for tracking long walks [10 - 15km] (which are acting as my major 'workout' trying to keep in at least basic shape [I tried running, but that set me back many months - I use run a couple decades ago]. It is good at motivating you if you can get into a regular pattern. The other thing it does very well is allow me to keep in contact when I normally wouldn't be. I typically only bring my iPhone with me (before the watch), when I expected to need it (expecting message or call or needing maps, or during lockdown my checkin/checkout when entering/leaving a shopping area)... now the watch serves that purpose. As far as I am concerned Apple is still making the devices that I like/want to use... there may be a day when it starts failing, but right now I am still happy.

      • cnc123

        I have to think a lot of the growth is in folks spending their stimulus checks on new devices.

      • GT Tecolotecreek

        "The Apple Watch growth figure is particularly mind-boggling: 75% first time buyers for a product range that's six years old."

        Even more mind-boggling considering you have to have an iPhone to use an Apple Watch.

      • jdawgnoonan

        Well, Apple is now ahead of Android in the US with about 54% marketshare, so I am guessing a fair number of people here are leaving Android for iOS too.

        • wright_is

          It has always been ahead in the US, usually by much more. That is what boosts its worldwide figures. In Germany, it used to have less market share than Windows Phone, for example! But it has grown again in the last 2 years to creep over the 20% mark.

  2. bluvg

    ...and they did it all while working from home. Um, yeah, guess that isn't working out.

  3. ghostrider

    Anyone else starting to feel big tech profits are getting obscene? Many pay next to no taxes in some of the countries they operate, yet get tax breaks in areas they setup in. They push smaller players out of business, sell consumers products we don't really need (but tell us they'll make our lives better) and make ridiculous profits in the process. They're getting too big and too powerful, and I can see why they're now under some serious legislative scrutiny.

    • bkkcanuck

      Profits eventually go to shareholders, funds and companies like this are widely held. Many of these shares and funds are held in retirement accounts or pensions. Apple has been trying to reduce the pile of cash and push more of it back to the shareholders (earlier they were still operating like they were afraid of famine as a result of the long period of hard times, but that has eventually changed in the last decade.

  4. nbplopes

    What a money printing machine. Absolutely gravity defying.

    As I see it, the thing of Apple it marks innovation through very good execution … not so much ground breaking ideas. And it has the entire company aligned with this.

    I always believed that if you execute well with the right backing you do well. While if we do not execute well the core innovative idea is lost in a mud of unrealized potential.

    Anyway is in a position that it’s basically a rival … even in markets that it has not yet stepped in.

  5. curtisspendlove

    I find this part interesting:

    Apple lacks a service where they resell time on cloud servers.

    Microsoft has Azure, Google has GCE.

    Apple still makes 1.5x - 2.0x revenue.

    • wright_is

      It is the difference between selling a "normal" product and a Veblen product. The more Apple charges, the more people want it. With Windows, Android etc. the higher the price, the more people look for lower priced alternatives.

      I switched to Android because iPhones were simply too expensive and Android offered more flexibility. But the prices have increased to iPhone levels and de-googling an Android device is getting ever harder. I'm seriously looking at going back to the iPhone (after nearly a 10 year break).

      • xamzara

        Did you consider that iPhone gets software upgrades for 5-7 years and with a couple of battery replacements you can easily get half a decade out of it.

        So - not necessarily that expensive after all.

        I’m using an almost four year old iPhone X. Still great.

        • wright_is

          My brother-in-law's Samsung Galaxy S3 mini had a replaceable battery, that lasted him 7 years - although it was a security nightmare...

          My current S20 should get 4 - 5 years of updates (3 version upgrades and a year of security updates after that). They also arrive promptly, within 2 days of Google releasing their monthly security updates.

          My iPhone SE company phone, on the other hand, gets bundled security updates only sporadically - although I've heard that Apple are looking at providing monthly security updates going forward, with version 15.

          • xamzara

            Both iPhone SEs, the original one from 2016 (I think) and the new one are still getting normal iOS updates.

            Both will get iOS 15 in September.

            Apple is superior to anything else out there when it comes to updates. Samsung is slow with major Android updates and it’s only three-ish years and then you won’t get the latest Android. Which may or may not be meaningful, but I find it amazing that my iPhone 6s from 2015 gets a bunch of new features again.

            The battery needs replacement though, but it’s just a quick trip to the local authorised service.

    • GT Tecolotecreek

      Probably the difference between selling commodity products (Azure, GCE) and specialty products (iPhone, iPad, Mac, etc). Over time the price of commodity go one direction, down. This then pressures margins in the business. Specialty products add new capabilities to protect price and margins. Also commodities usually have minor product differences between competitive products while specialty product will have "unique" features with each new product release.

  6. red.radar

    the numbers are mid boggling. To have an organization large enough to spend 60 billion a quarter… that would terrify me as a manager.

  7. cavalier_eternal

    Having the Wearables, Home and Accessories move into Apple’s third largest market segment is pretty entertaining given that tech pundits have dismissed every product that falls in the category (Apple Watch, AirPods …).