iPhone sales helps Apple crush Wall Street estimates in Q3

It is indeed another smashing quarter for Apple as it posted $81.4 billion in revenue, topping Wall Street's $73.3 billion estimate. The revenue increased 36% on a year-over-year basis for the company.

Here's how Apple performed in its fiscal third quarter:

• EPS: $1.30, beating $1.01 estimates 
• Revenue: $81.41 billion, up 36% YOY, beating $73.30 billion estimates 
• iPhone revenue: $39.57 billion, up 49.78% YOY, topping $34.01 billion estimates

"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 Meastri, Apple CFO, in a release. "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."

Other segments of the company each contributed to the quarter's growth. However, iPhone sales and subscription contributed the most to the company's revenue growth. This has been the story from in the last several quarters.

iPhone sales jumped $39.5 billion from $26 billion as the newer models featured 5G and sleeker designs. While iPhone services rose $17.5 billion, from $13.1 billion for the quarter. 

The iPhone maker has continued to grow and expand its services and offerings which now include Arcade, News+, TV+, Fitness+, Music, as well as iCloud. The company is optimistic that its subscription portfolio will be the future of its revenue growth.

Despite the trade and tech tensions between the US and the Chinese governments, greater China accounted for more sales in Apple's third fiscal quarter. The company posted $14.76 billion in sales for the Asian region, up more than 50% increase from a year ago. While the Americas region grew to $35.89 from $27 billion.

CEO Tim Cook, highlighted covid-related issues that threatened the company's product sales, especially societal concerns. However, he stated that the company will continue to put more efforts in its growth, as it aims for better years to come.

"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 code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future."

Due to pandemic-related uncertainties, the company declined offering guidance for the next quarter. CFO Meastri told investors during a follow up call that the company expects "revenue growth to be lower than our June quarter", citing issues like foreign exchange rates with the US dollar, supply chain issues for its hardware offerings, and a slow down in the company's growth rate of services.