|Apple delivers record profits|
Apple has reported that revenues increased 36% to $81.4bn, a best-ever for its fiscal third quarter, and higher than the $73bn consensus forecast. Meanwhile, net income nearly doubled to $21.7bn in the three months to the end of June, with sales of its iPhone 12 handsets increasing 50% to $39.6bn, some $5bn ahead of expectations. Sales in China also grew by 60% as consumers snapped up accessories such as the Apple Watch and earbuds to pair with their iPhones. “This quarter saw a growing sense of optimism from consumers in the United States and around the world, driving renewed hope for a better future and for all that innovation can make possible,” Apple chief executive Tim Cook said. “But as the last 18 months have demonstrated many times before, progress made is not progress guaranteed.” As well as citing the risks posed by the Delta variant of the coronavirus, he warned silicon “supply constraints” will affect sales of the iPhone as well as the iPad. “The majority of constraints we’re seeing are of the variety that I think others are seeing, that I would classify as industry shortage [...] We do have some shortages in addition to that, that are where the demand has been so great and so beyond our own expectation that it’s difficult to get the entire set of parts within the lead times that we try to get those."