Apple released its first quarter earnings report of 2021 today. For the first time in its history, Apple’s quarterly revenue exceeded $100 billion, with total revenue of $111.4 billion and earnings per share of $1.68.
Although Apple’s 5g iPhone was released later than usual, the iPhone business still performed well, with revenue of more than $65 billion, especially in China, where sales increased by 57%. “We have two of the top three smartphones sold in China,” Apple CEO Tim Cook said in a conference call after the results He also mentioned that more than 1 billion iPhones have been installed.
Apple’s highest revenue quarter in history
As of December 26, 2020, Apple’s quarterly revenue increased by 21% to $111.44 billion. Earnings per share increased from $1.25 to $1.68.
IPhone’s revenue in China rose 57% to $21.31 billion in the quarter from $13.58 billion in the same period last year, according to the results.
“We have two of the top three smartphones sold in Chinese cities, and many of Apple’s other products and services are selling well,” Cook said in a conference call He mentioned that Apple’s iPhone sales in China come from both the conversion from competitors’ Android devices and the upgrading of existing customers’ devices. “In particular, upgrade users have set a historical record in China,” cook stressed
Apple’s good performance in this quarter’s financial report benefited from strong sales of iPad, iPhone, MAC and service, which reached a record high. Tim Cook said Apple has 1.65 billion active users now, up from 1.5 billion a year ago. Apple’s total number of active users includes iPhone, iPod touch, iPad, MAC, Apple TV and apple watch models in use around the world.
This quarter, iPhone sales also reached a milestone height. According to cook, the number of active iPhone users has increased from 900 million in 2019 to 1 billion.
Mac and iPad sales set new records
In addition, sales of Apple’s MAC laptops and iPads were also strong this season, driven by consumers’ work at home, study and entertainment during the epidemic.
Mac’s sales this quarter reached $8.68 billion, in line with analysts’ expectations of $8.69 billion. Apple broke its nearly 15 year partnership with Intel in November when it released its first laptop and desktop computer with a self-designed processor chip. IPad sales were $8.44 billion, compared with analysts’ forecast of $7.46 billion.
Sales of Macs and iPads continued to grow, with apple reaching a record new quarterly revenue for the MAC category, thanks to a 21% year-on-year growth.
In the first quarter of 2021, Apple’s MAC revenue was $8.7 billion, up from $7.2 billion in the same period last year and the previous record of $7.4 billion in the first quarter of 2019. According to Luca Maestri, Apple’s chief financial officer, the growth was driven by the new M1 Macs, including the MacBook Air, the 13 inch macbook pro and the Mac Mini.
Apple’s “iPad” category revenue was $8.4 billion, up 41% from $6 billion in the same period last year. According to Tim Cook, Apple’s chief executive, sales of iPads and Macs were limited this quarter, which hindered sales to some extent.
With the product iteration, Apple’s iPad and MAC sales will continue to maintain strong growth. There are rumors that a new iPad will be launched this spring, and Apple will also make some major updates for IMAC and MacBook Pro, which may boost sales.
The revenue of service category increased significantly, with more than 620 million paid
Apple’s service categories include app store, MAC app store, apple music, apple pay, apple care, Apple TV +, apple arcade, apple news +, apple fitness, etc. these services achieved significant growth in the first quarter of 2021.
Revenue from the services sector was $15.8 billion, up from $12.7 billion in the same period last year, according to the results. Apple currently has more than 620 million paying users, and its goal is to reach 600 million by the end of 2020.
At the end of 2020, Apple launched the “apple one” service bundle, pairing Apple Music, apple arcade and Apple TV + services at a lower price, and launched Apple fitness + for $9.9 per month. Apple one’s revenue was $15.76 billion, compared with analysts’ forecast of $14.8 billion.
In addition, the latest report shows that the app store’s total revenue will exceed $64 billion by 2020. This is up from the $50 billion estimated in 2019. Apple did not confirm the app store sales figures, but earlier this month said it had paid $200 billion to developers since 2008, an increase of $45 billion over the figure provided in January 2020.
Wearable device revenue exceeded expectations and may decline in the next quarter
Apple’s wearable devices and accessories division, including the apple watch and airpods product line, generated $12.97 billion in revenue, compared with analysts’ forecast of $11.96 billion.
The 30% growth seen in this category in the quarter was driven by demand for Apple watch, homepod mini and all airpods models.
According to Tim Cook, Apple’s chief executive, all three subcategories of wearable devices, home appliances and accessories set new revenue records, and cook said he was “excited about the future of these products.”.
Luca Maestri, Apple’s chief financial officer, said Apple’s wearable business has now reached the scale of a fortune 120 company. In particular, apple watch continues to expand its coverage, with 75% of the customers who purchased Apple watch this quarter being new users of the product.
Maestri said that thanks to the integration of Apple’s hardware, software and services, apple is excited about the future of the wearable device category, which enables the company to provide excellent customer service. Looking ahead, however, apple expects demand for wearable devices to decline from the first quarter, as most of the growth this quarter was due to holiday sales.
Although the iPhone 12 series is shipping a few weeks later than usual, more models and new look seem to be driving the backlog of upgraded models, especially in China.
In terms of revenue and profit, this is the best quarter in Apple’s history, surpassing the previous highest quarterly revenue in fiscal year 2020, easily breaking the $100 billion mark.