Apple recently released its Q3 2021 earnings report showing earnings that were above expectations, with revenues increasing 36% year-over-year to $81.4-billion and profits jumping 93% to $21.7-billion. The increase in revenue is reported to be because of a boom in iPhone sales during the quarter.
“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 in a statement.
During the Q3 2021 earnings report call, Cook also revealed that a high number of smartphone users had switched to iPhone between April and June 2021. Since Android is iPhone’s only real competition, it is fair to say that a vast majority of these switchers came from Android devices.
This is in contrast to Apple’s own internal research documents, previously released during the company’s legal conflict with Epic Games. The research showed Apple had lost iPhone customers to other smartphone brands during 2019 and 2020.
Cook did not share official numbers of device sales but did share that a large number of people bought their first iPhones over this period.
In addition, and according to the earnings report, a record number of current iPhone users upgraded to new models.
“We had strong double-digit growth for switchers and for upgraders,” Cook said in response to a question during the call.
“In fact, it was our largest update quarter ever.”
Apple’s Q3 Results
According to CNN, the June quarter is typically Apple’s slowest time of the year but Apple’s results suggest the California-based corporation is still going strong, even as a global chip shortage has caused a slowdown in the sales of Apple products.
“Apple reported another solid quarter, highlighting the durability of the company’s brand,” said Jesse Cohen, senior analyst at Investing.com, quoted by CNN.
“IPhones were the biggest driver of growth, suggesting consumers are continuing to upgrade to 5G.”
During the same earnings report call, Apple executives declined to provide revenue guidance for the September quarter but said they were expecting a slower revenue growth rate than during the June quarter.
Apple’s stock fell more than 2% in after-hours trading following the results.