Apple on Wednesday reported a blowout quarter with sales 54 percent higher than last year, significantly stronger profits than Wall Street expected. It has also reported double-digit growth in every single category of products. Most importantly, iPhone was 65.5 percent up as compared to last year. Additionally, Apple stock rose over 4 percent at one point in extended training. Besides that, its iPad and iMac sales have also done quite better with its desktop up by 70.1 percent. Moreover, iPad sales have also grown up to 79 percent on an annual basis.
Revenue Generated by Apple
Apple said that it would upsurge its dividend by 7 percent to $0.22 per share. It has also approved $90 billion share buybacks, which is substantially greater than the previous year’s $50 billion expenditure and 2019’s $75 billion. Given below is Apple’s versus Refinitiv estimates: –
- EPS: $1.40 vs. $0.99 estimated
- Revenue: $89.58 billion vs. $77.36 billion estimated, growth of 53.7% every year.
- iPhone Revenue: $47.94 billion vs. $41.43 billion estimated, growth of 65.5% year over year.
- Services Revenue: $16.90 billion vs. $15.57 billion estimated, the upsurge of 26.7% every year.
- Other products revenue: $7.83 billion vs. $7.79 billion estimated, growth of 24% year after year.
- Mac revenue: $9.10 billion vs. $6.86 billion estimated, the upsurge of 70.1% every year.
- iPad revenue: $7.80 billion vs. $5.58 billion estimated, growth of 78.9% year over year.
- Gross Margin: 42.5% vs. 39.8% estimated.
However, so far, Apple has not issued any guidance regarding what it expects in the June ending quarter. It hasn’t issued any revenue guidance since the beginning of the pandemic. Thus, there is uncertainty. However, this is the company’s second-quarter in a row that has witnessed double-digit growth in all categories. Luca Maestri, Apple CEO stated that the company expects its revenue in June to rise by double-digits every year. Although, the company also faces an inventory shortage sometimes.
Boost in Sales Due to the Pandemic
Apple has made it very clear that the pandemic has boosted up their sales. Due to work from home program, there has been a surge in their MacBook and iMac sales. More and more consumers bought computers in the pandemic period. The company is hoping this trend to continue in the future as well. Mac sales were up by 70 percent. CEO Tim Cook mentioned that Mac sales fueled up because of the introduction of M1 chip laptops. iPad sales were also up by 79 percent year over year.
Growth in Apple Services
Apple Music, iCloud, and App Store subscriptions also showed 26.7 percent growth. The company uses the number of subscriptions as a metric to measure growth. Apple has over 660 million paid subscriptions of its services worldwide. The gross margin was also elevated unusually for the company. Mostly it used to be in the 38-39 percent range, but in the March ending quarter, the tech giant reported 42.5 percent margins.