Cook talks about his own chips as Apple’s earnings soar

Spark Global Limited reports:

Spark Global Limited reports:

Apple announced its q3 2021 results today, reporting that the company posted a record net revenue of $81.434 billion in the third quarter, up 36% from $59.685 billion in the same period last year.

In the third quarter, iPhone revenue was $39.57 billion, up 49.78% from the same period last year. Services revenue of $17.48 billion, up 33% year-over-year; Mac revenue was $8.235 billion, up 16% year-over-year; Revenue from the iPad business was $7.368 billion, up 12% year-over-year.

In an earnings call, Apple CEO Tim Cook talked about how “Apple decides whether to build or buy a component in a product.” He said, “We choose the better, and we think about whether we can do the best we can.”

Cook sees this as an important issue to drive follow-on sales, and they want to do better. “If someone else in the market can do as well or better than us, we will buy. “Apple is going to add more value to what it does well and deliver better products where it can do it well.”

Using apple’s M1 chip as an example, Cook said apple’s chip team has the ability to make better products than can be bought. The M1 chip works like no one expected, it’s a better experience for users, and it’s been driving Sales of Macs and ipads.

“That’s how we look at it and whether we should be in a market or not,” Cook said.

The success of the M1 chip also allows Apple to no longer rely on Intel technology or chip release schedules, and apple is planning to launch its own baseband in the future, reducing its reliance on Qualcomm.

In its fiscal q3 2021 report, Apple reported net revenue from Macs of $8.233 billion, compared with $7.079 billion in the same period last year, and iPad revenue of $7.368 billion, compared with $6.582 billion in the same period last year.

That was short of analysts’ expectations. Mr Cook said Apple had been hit by a global chip shortage, which had limited Sales of Macs and ipads, but even so, the impact on apple’s overall revenue was lower than at the lower end of previous forecasts.

Apple’s wearables, Home and Accessories division, which includes devices such as the Apple Watch, AirPods and Apple TV, also rose 36 percent to $8.78 billion in revenue, the report said.

“It was kind of a gold medal for Apple to have a quarter like this, which is tough given the chip shortages,” said Dan Ives, an analyst at Wedbush Securities.

Those results could help Apple achieve a market value of $3 trillion over the next year, up from about $2.5 trillion this year.