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Apple revenues breach US$100bn for the first time

The tech giant reported sales for its first quarter of US$111.4bn, up 21% year-on-year, while quarterly EPS jumped 35% to US$1.68, both of which were ahead of market forecasts

Apple

Apple Inc (NASDAQ:APPL) has reported quarterly revenues of over US$100bn for the first time ever amid record sales in its iPhone, wearable devices and services businesses.

In its results for its first quarter ended December 26, 2020, delivered after the Wall Street close on Wednesday, the tech giant reported record revenues of US$111.4bn, up 21% year-on-year, while quarterly earnings per share (EPS) jumped by 35% to US$1.68.

READ: Apple and Hyundai in talks over electric vehicle venture whilst Musk’s Tesla charges on

The revenue figure was above analyst forecasts of around US$103bn, while the EPS figure also beat market estimates at US$1.42.

Apple highlighted that sales of its flagship iPhone rose sharply to US$65.6bn in the period, up from just under US$56bn a year ago. Meanwhile, revenues from iPad sales jumped to US$8.4bn from US$6bn and iMac revenues were up to US$8.7bn from US$7.2bn amid higher demand from home workers.

The company also reported growth from its services division, which includes its Apple TV+ streaming arm as well as its music and iCloud businesses, where revenues rose to US$15.8bn from US$12.7bn. Sales of wearables such as the company’s Apple Watches rose to around US$13bn from US$10bn last year.

International sales were also shown to have performed strongly, comprising 64% of revenues in the quarter compared to 61% a year ago, with Apple’s key Chinese market reporting a 57% increase in sales alone.

Apple’s chief financial officer Luca Maestri attributed the blockbuster performance to “double-digit growth” in every product category, adding that the company had also generated record operating cash flow of US$38.8bn in the period and a dividend of US$0.20 per share.

“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide. 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 chief executive Tim Cook said in a statement.

However, despite the record-breaking numbers the shares were down 3.7% at US$136.76 in pre-market trading in New York on Thursday, which may be connected to profit taking and a lack of an outlook statement from the company for the coming year.

Markets.com’s Neil Wilson said that while the lack of an outlook “remains a thorn”, the quarterly performance “should not be seen as a high watermark for Apple”.

Quick facts: Apple Inc.

Price: 125.57 USD

NASDAQ:AAPL
Market: NASDAQ
Market Cap: $2.11 trillion
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