Apple recently announced that they performed “better than expected” in their third quarter, netting $83 billion as a result. Apple CEO Tim Cook pointed out that the success was thanks in part to a very successful June quarter, with developing and emerging markets showing sizable growth. He mentioned Brazil, Indonesia, Vietnam, and a near doubling of growth in India.

When asked about the factors powering the iPhone’s growth in an earnings call with analysts, Cook said, “It’s the product and the innovation within the product that’s driving it. The other key variables such as size of the installed base have been growing significantly. We also set a June quarter record for switchers with strong double-digit growth that is fuelling the additional install base. We continue to execute across some significant geographies with low penetration of iPhones between Indonesia, Vietnam and India where we did quite well. iPhone tends to be the engine for those markets, particularly at the beginning of creating the market there for Apple products.”


According to Apple CFO Luca Maestri, Apple services has set “all time records”, in many countries around the world, including the US, Mexico, Brazil, Korea and India. He highlighted that enterprise adoption was pushing Apple in these markets. Companies like Wipro, with increasing investment in Apple products were helping attract and retain new Apple users. “Wipro, another large mobile enterprise customer, is investing in MacBook Air with M1 as a competitive advantage when recruiting new graduates globally- thanks to its superior performance and lower total cost of ownership,” he added.

According to Maestri, Apple believes that its year-over-year revenue growth will accelerate even more during the September quarter, this would be despite the “approximately 600 basis points of negative year-over-year impact from foreign exchange”. He added that he expected the supply constraints to be lower next quarter than in the June quarter.  “Specifically related to Services, we expect revenue to grow but decelerate from the June quarter due to macroeconomic factors and foreign exchange.”

According to Cook, the majority of the supply constraints last quarter were because of the COVID restrictions which in turn led to the closure of plants and plants running at less capacity for parts of the quarter. Cook also believes that the silicon constraints will be less in the September quarter than they were in June.

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