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Apple Reports Record Revenue of $81.4 Billion for Q3 FY2021

A 36% increase over its third quarter of fiscal year 2020

Apple completed a solid third quarter of fiscal year 2021, reporting record revenue of $81.4 billion, a 36% increase over the third quarter of fiscal year 2020. Of that total, $63.9 billion came from product sales, or 78.5% of net sales, and $17.5 billion came from services, including Apple subscriptions (e.g., iCloud, Apple Music, Apple TV+, Apple Arcade, Apple One bundles, etc.), or 21.5% of net sales. Net income for the quarter was $21.7 billion, or $1.30 diluted earnings per share, compared to $11.3 billion, or $0.65 diluted earnings per share for the same period last year.

CEO comments

“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said Tim Cook, Apple’s CEO, in a July 27, 2021 news release. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”

Quarterly highlights

Highlights from Apple’s third quarter of fiscal year 2021, which ended on June 26, 2021, include the following:

  • iPhone made up the largest portion of net sales at $39.6 billion, followed by Services at $17.5 billion; Wearables, Home and Accessories at $8.8 billion; Mac at $8.2 billion; and iPad at $7.3 billion.
  • The Americas have the largest portion of net sales at $35.9 billion, followed by Europe at $18.9 billion, Greater China at $14.8 billion, Japan at $6.4 billion and the rest of Asia Pacific at $5.4 billion.
  • Operating expenses for the quarter were $11.1 billion.
  • Gross margin for the quarter was 43.3%.
  • At the end of the quarter, Apple had $35.3 billion in cash, cash equivalents and restricted cash.
  • The Apple board declared a cash dividend of $0.22 per share for common stock, payable on August 12 to shareholders who owned Apple common stock on August 9.

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”


Due to the uncertainty around COVID, Apple did not provide specific revenue guidance on the earnings call, but they said they expect to see double-digit year-over-year revenue growth, but lower than the growth in the most recent quarter. The decrease in growth will be due to the foreign exchange rate, a decline in the services growth rate, and supply constraints which will primarily impact iPhone and iPad sales. Gross margin will be between 41.5% and 42.5%.

Insider Take

Apple had an incredible quarter and, though it looks like the third quarter won’t be quite as stellar, Apple is expecting that. There is a slowdown in services revenue, but this seems likely to increase a little because the lengthy free trials of Apple TV+ are over. It is uncertain how many viewers will convert into paying viewers, but Apple’s growing subscription business will provide the company with recurring revenue to offset product revenue losses.

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