Apple posts bumper sales growth, but component shortages set to impact on Q3

Third quarter revenues surged by 36% to $81.4bn, beating the analyst consensus by a wide margin as iPhone sales vaulted higher by roughly half.

Mac sales were 16% stronger alongside at $8.24bn, while those of iPads increased by 12% to reach $7.37bn and those of services grew 32.9% to $17.5bn.

The technology manufacturer however also said that component shortages would hit sales of its iPhones and iPads in the current quarter - although it still expected a "strong" double-digit turnout.

The Wearables, Home and Accessories segment saw revenues increase 36% to $8.78bn.

Net income meanwhile jumped 93% to reach $21.74bn, for adjusted earnings per share of $1.30 (consensus: $1.01).

Apple's free cash flow meanwhile strengthened from $54.6bn in the year ago quarter to $76.0bn.

Yet its net debt was also up significantly, from $60.1bn at the end of 2020 to $76.0bn, Sophie Lund-Yates, senior equity analyst at Hargreaves Lansdown pointed out.

"The problem with being the best is you risk becoming a victim of your own success. That’s what we’ve seen from the reaction to Apple’s results, where despite an exceptional performance, the market’s response has been somewhat muted," Lund-Yates said.

"The growth might be slower than last quarter, but you only have to look at the figures to appreciate Apple’s hardly in any trouble, quarterly revenues of over $81bn would put most businesses on the planet to shame."

As of 1256 BST, shares of Apple were dipping 1.12% to $145.13.