Apple CEO Tim Cook unveils the new iPhone 12.
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Apple on Wednesday delivered its biggest quarterly revenue ever, with $ 111.4 billion in its first-quarter earnings report for 2021. This is the first time Apple has surpassed the symbolic $ 100 billion mark in a single quarter, and sales rose 21% year-over-year. for a year.
Apple shares fell less than a percentage in expanded trading.
Apple’s results for the quarter ended December were not just boosted by iPhone 5G sales. Sales for each product category increased by double-digit percentage points. Apple’s earnings per share and sales easily exceeded Wall Street expectations.
Here’s how Apple opposed calculating the Refinitive Consensus:
- EPS: $ 1.68 vs. An estimated $ 1.41
- Income: $ 111,444 million vs. 103.28 billion dollars estimated, 21% more year-on-year
- iPhone revenue: $ 65.60 billion vs. An estimated $ 59.80 billion, up 17% year-on-year
- Service revenue: $ 15,766 million vs. $ 1480 million estimated, up 24% year-on-year
- Other product revenue: $ 12,977 million vs. An estimated $ 11.96 million, up 29% year-on-year
- Mac revenue: $ 8,688 million vs. An estimated $ 8,698 million, up 21% year-on-year
- IPad revenue: $ 8.444 billion vs. an estimated $ 7.446 billion, up 41% year-on-year
- The gross margin: 39.8% vs. 38.0% estimated
Apple CEO Tim Cook said the results could have been even better had it not been for the pandemic and Covid-19 blockades that forced Apple to temporarily close some Apple stores around the world.
“By removing stores from the equation, especially for iPhone and laptop devices, there’s a big failure in sales,” Cook told CNBC’s Josh Lipton.
Apple did not provide official guidance for the next quarter. It has not offered forecasts to investors since the beginning of the pandemic.
But even the lack of guidance could not diminish what meant a quarter of exploitation for the iPhone maker. During the pandemic, Apple has benefited from increased sales of computers and gadgets, as people who work or go to school from home due to blockages seek to upgrade the devices it uses.
Apple launched new iPhone models in October. The four iPhone 12 models are the first to include 5G, which investors believed could lead to a “supercycle” of users claiming to be upgraded. IPhone revenue rose 17% over the same period last year.
“They’re full of features that customers love and they arrived at exactly the right time, where the 5G networks were,” Cook said.
The category of other Apple products, which includes Apple Watch and headphones such as AirPods and Beats, rose 29% from last year to $ 12,977 million, although people spend less time moving around. if and travel. Apple launched in December a high-end headset, AirPods Pro Max, with a suggested retail price of $ 549.
Macs and iPads, the Apple devices most likely to be used to work remotely and at school, have also increased this quarter. Apple launched new Mac computers powered by its own chips instead of Intel processors in December, with positive reviews claiming to be superior in terms of power and battery life over older models.
Apple’s services business, which the company has highlighted as a growth engine, rose 24% year-over-year to $ 15.76 billion. This product category is appealing: it includes the money Apple earns from the App Store, subscriptions to digital content like Apple Music or Apple TV +, the license fees Google pays for being the default search engine of the iPhone and warranties.
Apple said in a statement that international sales accounted for 64% of the company’s sales, compared to 61% in the same quarter last year. The behavior of the new iPhone models in China, the company’s third-largest market, is a constant topic of discussion among investors.
“China was strong in all areas,” Cook said.
Apple also declared a cash dividend of $ 0.205 cents per share and said it had spent more than $ 30 billion on total shareholder return, including share repurchases, during the quarter.
Apple’s first fiscal quarter is usually the biggest of the year and includes critical holiday sales during the month of December.
Wednesday’s revenue is also a recovery story for Apple. Two years ago, Apple warned that its projection for sales for its holiday quarter was lower than the company expected, a rare warning that raised questions about whether Apple was losing momentum. On Wednesday, Apple revealed that revenue has risen more than 40% since that report.