It is a steller performance for both Apple Inc. and Google-parent Alphabet Inc even during pandemic environment. Apple posted $81.4 billion in revenue which is a 36% year-over-year jump for the company, beating Wall Street estimates of $73.3 billion by a considerable margin.
Apple posted adjusted earnings per share of $1.30, compared with an average analyst estimate of $1.01, resulting in a quarterly profit of $21.7 billion for the three months ended in June. It was iPhone sales and subscription services that continued to lead the way — a familiar story for anyone who’s followed the company the last several quarters.
Alphabet generated earnings per share of $27.26, ahead of the $19.35 consensus, while generating net income of $18.5. The search-and-services company posted revenues of $61.9 billion in the June 30, 2021 quarter. The results shows top-line growth of 62%, and net income expansion of 166%. Google Cloud reported revenue of $4.6 billion, up 54% year over year.
While analysing Apple’s performance, it is discussed that it is a software-and-services business company but its foundation still relies on the iPhone.
Apple CFO Luca Maestri said the company’s record June quarter operating performance included new revenue records in each of geographic segments, double-digit growth in each of product categories, and a new all-time high for the installed base of active devices.
“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,” said CFO Luca Maestri.
It is interesting to note that Alphabet’s primary business is more correlated to the economy in general than any particular product release. This is primarily due to most of its profit streams come from its dominant search engine, it also has broad-based exposure. Google is expecting more revenue from its advertising business.
Apple performed well for the current quarter, but analysts are looking at how their new smartphones will respond in the market. Also, the company is facing supply chain constraints across the globe affecting its product availability.
But at the same time both tech giants are facing legal tangles across the globe.