Apple's third-quarter earnings report marked a significant milestone for the company, as it was CEO Tim Cook's last full quarter in the role. However, the report itself was a testament to the company's financial strength, with a 16 percent year-over-year revenue increase and a gross margin of 50.1 percent.
The company's revenue reached $109.4 billion for the quarter, a new record for Apple. The Mac segment boasted a 29 percent increase, while iPhone revenue jumped 22 percent, and Services revenue saw a 12 percent increase. The company also set a new all-time record for Mac upgrades and sales to new customers.
When compared to the same quarter last year, Apple's earnings showed a significant increase. iPhone revenue rose to $54.3 billion, while Mac revenue reached $10.4 billion, a 29 percent increase from $8 billion. Services revenue also saw a notable increase, reaching $30.7 billion.
However, not all segments performed equally well. iPad sales were down 6 percent from last year, and the Greater China region saw a softer-than-expected result of $18.8 billion. Additionally, the company's higher prices for its products may have had a negative impact on overall earnings.
Apple's CFO, Kevan Parekh, stated that the company expects revenue to increase between 9 and 11 percent for the upcoming quarter, despite a current supply-chain shortage that will affect Mac, iPhone, and iPad sales. The company also increased its research and development expenditure by 31 percent, spending $11.7 billion.
In his final call as CEO, Cook expressed his confidence in the company's future and his successor, John Ternus. He stated that the transition to Ternus' leadership is going seamlessly and that he is excited for the company's next era. Cook's last full quarter as CEO saw Apple post $109.4 billion in revenue, a significant increase from his first year as CEO in 2012.
Apple's stock price was down $23 after the company's earnings call, but the company's financial strength and future prospects remain promising. As the company looks to the future, it is clear that Apple will continue to be a major player in the tech industry.
