Apple CEO Tim Cook unveils new iPhone 12.
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Apple on Wednesday delivered the highest quarterly revenue of all time, at $ 111.4 billion in its first-quarter earnings report for fiscal year 2021. It is the first time Apple has surpassed the $ 100 billion symbolic mark in -one quarter, and sales increased by 21% per year – over the year.
Apple shares fell less than one percent in extended trading.
Apple’s results for the quarter ended in December were not only determined by iPhone 5G sales. Sales for each product category increased by two percentage points. Apple’s earnings per share and sales easily exceeded Wall Street expectations.
Here’s how Apple did the consensus final estimates:
- EPS: $ 1.68 versus $ 1.41 estimated
- Income: $ 111.44 billion vs. estimated $ 103.28 billion, up 21% year-over-year
- IPhone revenue: $ 65.60 billion vs. estimated $ 59.80 billion, up 17% year-over-year
- Revenues from services: $ 15.76 billion vs. estimated $ 14.80 billion, up 24% year-on-year
- Revenue from other products: $ 12.97 billion vs. estimated $ 11.96 billion, up 29% year-over-year
- Mac revenue: $ 8.68 billion vs. estimated $ 8.69 billion, up 21% year-over-year
- IPad revenue: $ 8.44 billion vs. estimated $ 7.46 billion, up 41% year-over-year
- 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 Covid-19 pandemic and the blockages that forced Apple to temporarily close some Apple stores around the world.
“Taking stores out of the equation, especially for the iPhone and clothing, has a negative impact on sales,” Cook told CNBC’s Josh Lipton.
Apple did not provide official guidance for the next quarter. It has not provided investors’ forecasts since the beginning of the pandemic.
But even the lack of guidance could not diminish what was a quarter of an explosion for the iPhone manufacturer. During the pandemic, Apple benefited from increased sales of PCs and gadgets, as people who work or go to home school due to blockages seek to update the devices they use.
Apple launched new iPhone models in October. The four iPhone 12 models are the first to include 5G, which investors thought could lead a “supercycle” of users requesting upgrades. IPhone revenues increased by 17% compared to the same period last year.
“They’re full of features that customers love and they came 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, has increased by 29% compared to last year to $ 12.97 billion, even if people spend less time commuting and traveling. Apple launched a set of high-end headphones, AirPods Pro Max, in December, with a steep price of 549 USD.
Macs and iPads, Apple devices most likely to be used for distance and school work, also rose this quarter. Apple launched new Mac computers powered by its own chips instead of Intel processors in December, with positive reviews saying they were superior in battery power and life to older models.
Apple’s service business, which the company highlighted as a growth engine, grew 24 percent year-over-year to $ 15.76 billion. This product category is very attractive: it includes money earned by Apple from the App Store, subscriptions to digital content such as Apple Music or Apple TV +, licensing fees paid by Google to be the default search engine for the iPhone, and warranties.
Apple said in a statement that international sales accounted for 64% of the company’s sales, up from 61% in the same quarter last year. How new iPhone models evolve in China, the company’s third-largest market, is a constant topic of discussion among investors.
“China has been strong everywhere,” Cook said.
Apple also declared a cash dividend of $ 0.205 cents per share and said it spent more than $ 30 billion on total shareholder returns, which includes redemption of shares, in that quarter.
Apple’s first fiscal quarter is usually the biggest of the year and includes critical holiday sales in December.
Wednesday’s explosive earnings are also a recovery story for Apple. Two years ago, Apple warned that its projection for its quarterly holiday sales was lower than the company expected, a rare warning that raised questions about whether Apple is losing momentum. On Wednesday, Apple revealed that revenues had risen by more than 40% since the report.