Apple announced a 7.8% increase in net profit for the third quarter of its fiscal year, reaching a robust $21.45 billion. Between April and June, the tech giant’s revenue soared to $85.78 billion, outpacing market expectations, which had predicted sales around $84.4 billion, according to Bloomberg. This impressive performance is largely attributed to the growth in Apple’s services sector.
Over the first nine months of its fiscal year, Apple reported a total revenue of $296.1 billion, marking a modest 0.8% increase from the previous year. One of the most closely watched metrics by investors, the earnings per share, climbed to $1.40 this quarter, up from $1.26 a year ago, again surpassing forecasts.
However, not all news was positive. Apple’s revenue in China, a crucial market for the company, dropped by 6.5% during the quarter. Despite this decline, the decrease was less severe than the one observed over the first six months of the fiscal year.
The American company has managed to offset declining iPhone sales with the strong performance of its services. “We are seeing increased customer engagement and double-digit growth in paid subscriptions. We now surpass one billion paid subscriptions across all services,” CEO Tim Cook proudly announced during a call with analysts.
Apple’s services, which include the App Store, Apple TV+, Apple Music, and cloud storage, generated over $24 billion in revenue, an increase of $3 billion from the previous year. This segment now accounts for more than 28% of the company’s total revenue.
