Apple posts first $100B quarter in company history after strong iPhone 12 holiday demand
Apple’s revenue rose 21% to $111.4 billion in the first quarter
Strong demand for Apple’s iPhone 12 and growth in its burgeoning digital services category led the tech giant to its most lucrative holiday quarter in company history despite the impact of the coronavirus pandemic.
Apple’s revenue rose 21% to $111.4 billion in the first quarter, which reflected the first full sales figures for the iPhone 12 since its release on Oct. 23. The revenue total surpassed projections on Wall Street, where analysts estimated sales of $103.28 billion, and marked the first $100 billion quarter in Apple's history.
The iPhone remains a pillar of Apple’s business. Sales of the latest iPhone model – Apple’s first to utilize 5G technology – generated $65.6 billion in sales, a $10 billion increase in the category compared to last year’s holiday season and surpassing the $59.8 billion expected on Wall Street.
APPLE IPHONE DEMAND 'ROBUST' AHEAD OF QUARTERLY EARNINGS
“We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season,” Apple CEO Tim Cook said in a statement, “We are also focused on how we can help the communities we’re part of build back strongly and equitably, through efforts like our Racial Equality and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 229.00 | +0.72 | +0.32% |
Apple posted diluted earnings per share of $1.68, a 35% increase compared to the same period one year ago. Analysts projected an EPS of $1.41.
Revenue from Apple’s Mac, iPad and wearables segments also beat year-over-year totals as shoppers locked down during the pandemic turned to technology for work and recreation.
Apple’s services segment -- which includes iCloud, Apple Card and Apple Pay, as well as the company’s news, music and entertainment offerings such as streaming service Apple TV+ -- continued to grow. The category drove about $15.8 billion in revenue for the quarter, beating expectations by about $1 billion.
The iPhone maker did not provide second-quarter sales guidance. Apple hasn’t provided sales forecasts in recent quarters due to uncertainty related to the pandemic.
CLICK HERE TO READ MORE STORIES ON FOX BUSINESS
“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” Apple CFO Luca Maestri said in a statement. “These results helped us generate record operating cash flow of $38.8 billion.”
“We also returned over $30 billion in shareholders during the quarter as we maintain our target of reaching a net cash neutral position over time,” Maestri added.
Sales outside the U.S. comprised 64% of Apple’s quarterly revenue. The sum included sales of $27.3 billion in Europe and $21.3 billion in the greater China region.