Apple reported its Q1 2021 earnings after the closing bell on Wednesday, easily surpassing analysts’ expectations on the back of strong sales of its iPhone 12 line of smartphones.
The result announced is its financial results for its first fiscal quarter of 2021, which corresponds to the fourth calendar quarter of 2020.
For the quarter, Apple posted revenue of $111.4 billion and net quarterly profit of $28.8 billion, or $1.68 per diluted share, compared to revenue of $91.8 billion and net quarterly profit of $22.2 billion, or $1.25 per diluted share, in the year-ago quarter.
These are most important numbers from the report compared with what analysts were predicting.
Revenue: $111.44 billion versus $103.12 billion expected
Earnings per share: $1.68 versus $1.42 expected
iPhone revenue: $65.68 billion versus $60.33 billion expected
Service revenue: $15.76 versus $14.89 billion expected
The company’s stock was down 1% following the announcement, despite the fact that revenue was up 21% year-over-year and earnings per share was up 35% since this quarter last year.
“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.
Apple CEO Tim Cook greets fans outside the Apple Store on Fifth Ave in the Manhattan borough of New York, New York, U.S., September 20, 2019. REUTERS/Carlo Allegri
Apple CEO Tim Cook greets fans outside the Apple Store on Fifth Ave in the Manhattan borough of New York, New York, U.S., September 20, 2019. REUTERS/Carlo Allegri
This is the first quarterly report Apple issued following the launch of its iPhone 12 mini, the iPhone 12, the iPhone 12 Pro, and the iPhone 12 Pro Max.
Analysts, such as Wedbush’s Dan Ives, have long predicted that those new phones, which are Apple’s first to sport 5G connectivity, would launch a sales “supercycle” in which consumers who have held onto their older iPhones would upgrade en masse to get their hands on the latest cellular connectivity technology.
“We strongly believe the iPhone 12 supercycle hype has become a reality with this week giving the Street its first glimpse of underlying iPhone 12 demand and key commentary from [Apple CEO Tim Cook] looking ahead into the next few quarters,” Ives wrote in a research note.
Apple’s Services business also outperformed in the quarter, a key metric analysts and investors watch to ensure the company’s growth continues outside of iPhone sales.
Then there’s Apple’s Mac segment. That business pulled in $8.68 billion in the quarter following the debut of Apple’s new MacBook Air powered by its own custom M1 processor. Rumors abound of Apple releasing addition M1-powered Macs in the near future, which could further bolster the division’s sales moving forward.
