Last night our favourite luxury goods company, Apple, reported the biggest profits for a June quarter in its 45 years of existence. Every single product line grew more than 12% year-on-year. iPhone revenues grew 49.8%, which is exactly what you want from a business unit contributing almost half of group sales.
Apple's total quarterly revenue grew by 36% year-on-year to $ 81.4 billion, and profits were a mind-blowing $21.7 billion. The company is on its way to its best year ever, with profits estimated to cross $86 billion. That would be 51% better than last year.
The Apple ecosystem now has more active devices on the network than ever, which translates directly to higher future revenues. Customers seem to be enjoying the iPhone 12, with its 5G connectivity, and this excitement may carry through to the year 2022.
We are very positive about the future of Apple because as more people buy their products, the more entrenched they will be in the Apple ecosystem. The majority of future revenues will come from Apple Services, currently the second biggest business unit.
Apple remains a must-have position in every offshore portfolio. In fact, it's always top of our buy list when a new client opens a Vestact account in New York.