Despite absolutely smashing expectations on last night’s earnings call, Apple’s iPhone hot streak could be headed towards a grinding halt.
It’s often impossible to ignore earnings noise as an investor, especially when Apple (NASDAQ: AAPL), Google, and Microsoft all report on the same evening.
Despite the abundance of discussion material though, it’s Apple’s iPhone numbers that caught my eye.
What’s the big deal with iPhones?
We’re all well aware of how important the iPhone is to Apple. It’s an industry-defining product that makes up approximately half of its revenue and Q2 was no different, with iPhone sales up 50% annually to $39.57 billion in sales.
This is no fluke either, with iPhone sales up 65% last quarter and 17% before that. Apple’s on a winning streak, but investors might want to brace for an emergency stop because semiconductor shortages are inbound.

Due to a mix of COVID-19, natural disasters, and a couple of significant warehouse fires last year, semiconductor chips and other such components have been in short supply for a while — it’s kind’ve a big deal.
And last night, Apple CEO Tim Cook was quick to warn of this impending impact on iPhone sales, warning that “supply constraints” will negatively impact future results related to iOS devices.
But fear not, Apple investors, because while the company’s supposed overreliance on the iPhone has been a source of bearish sentiment for years now, it’s hard to ignore progress elsewhere.
Services revenue jumped to a record $17.5 billion, gross margins rose to more than 43%, and every other segment of its business is growing.
In the coming months, when the chips are down — or rather, chips are in short supply — just remember that investing is not a game of quarters, but of decades, and Apple has more than proven itself historically.
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