Surging iPhone sales help Apple overcome global supply chain shortages

• Apple smashed Wall Street estimates in its Q3, reporting a 50% YOY growth in iPhone sales.
• Apple also reported strong Mac and iPad growth despite a supply chain shortage affecting both.
• CEO Tim Cook said the firm was able to “mitigate” some of the shortage-related costs.
• See more stories on Insider’s business page.

Apple on Tuesday reported fiscal third-quarter financials that easily surpassed Wall Street expectations.

The company reported $81.32 billion in revenue and adjusted earnings of $1.30 for the June quarter.

The iPhone giant’s report comes amid a global supply chain shortage, one that the company has said would not impact its iPhone production. However, CEO Tim Cook said earlier this year that the worldwide chip crisis could impact iPad and MacBook production.

Apple was able to “mitigate some of” the estimated $3 to $4 billion in expected shortage-related costs, Cook told CNBC

Here’s a look at the key numbers:

• Revenue: $81.32 billion versus $73.3 billion expected.
• Earnings per share (EPS): $1.30, versus estimates of $1.01.
• iPhone revenue: $39.57 billion versus an expected $36.5 billion.
• Services revenue: $17.48 billion versus an expected $16.3 billion.

Apple’s growth in iPhone sales was up 50% from this time last year, and Cook attributed the surge in part to Android customers entering the Apple ecosystem.

“We saw a very strong double digit increases in both upgraders and switchers during the quarter,” Cook told CNBC.

Services, which includes things like the App Store, Apple Music, and TV, also hit a new revenue record, up 33% from last year.

Shares of Apple sank about 1% in late trading Tuesday following the results.

“We would characterize this as a “gold medal” performance by Apple during the quarter especially when considering the chip shortage overhang,” analyst Dan Ives said in a note to clients.