Apple (AAPL) earns Q1 2021

Apple delivered its largest quarter of all-time revenue of $ 111.4 billion in the first quarter of fiscal 2021 on Wednesday. % on an annual basis. over the year.

Apple’s results for the quarter ended December weren’t solely driven by 5G iPhone sales. Sales per product category increased by double digits. Apple’s earnings per share and sales conveniently exceeded Wall Street expectations.

Here’s how Apple fared against Refinitiv’s consensus estimates:

• EPS: Estimated $ 1.68 vs. $ 1.41
• Revenue: $ 111.44 billion vs. $ 103.28 billion estimated, up 21% year-over-year
• iPhone Revenues: $ 65.60 billion vs. $ 59.80 billion estimated, 17% more than a year ago
• Services revenue: $ 15.76 billion vs. $ 14.80 billion estimated, up 24% year-over-year
• Revenue from other products: $ 12.97 billion versus $ 11.96 billion estimated, 29% more than a year ago
• Mac Revenues: $ 8.68 billion vs. $ 8.69 billion estimated, 21% higher than a year earlier
• IPad Revenue: $ 8.44 billion vs. $ 7.46 billion estimated, up 41% year-over-year
• Gross margin: 39.8% vs. 38.0% estimated

Apple CEO Tim Cook said the results could have been even better had it not been for the Covid-19 pandemic and lockdowns forcing Apple to temporarily close some Apple stores around the world.

“If we leave out the stores, especially for iPhones and wearables, there is a drag on sales,” Cook told CNBC’s Josh Lipton.

Apple has not issued any official guidance for the coming quarter. It hasn’t made any predictions to investors since the pandemic began.

But even the lack of guidance couldn’t diminish what was a blowout quarter for the iPhone maker. Apple took advantage of increased sales of PCs and gadgets during the pandemic as people who work from home or go to school due to lockdowns want to upgrade the devices they use.

Apple released new iPhone models in October. The four iPhone 12 models are the first to feature 5G, which investors believed could trigger a “super cycle” of users screaming to upgrade. IPhone revenues were 17% higher than the same period last year.

“They’re packed with features that customers love, and they came in at just the right time, with where 5G networks were,” Cook said.

Apple’s other products category, including Apple Watch and headphones such as AirPods and Beats, was up 29% from last year to $ 12.97 billion, even though people spend less time commuting and traveling. Apple released high-end headphones, AirPods Pro Max, in December, with a steep suggested retail price of $ 549.

Macs and iPads, the Apple devices most likely to be used for home work and school, also rose this quarter. Apple released new Mac computers powered by its own chips instead of Intel processors in December, with positive reviews saying they were superior in terms of power and battery life over the old models.

Apple’s service business, which the company has put forward as a growth engine, grew 24% year-over-year to $ 15.76 billion. That product category is comprehensive: it includes the money Apple earns in the App Store, subscriptions to digital content such as Apple Music or Apple TV +, licensing fees paid by Google to be the iPhone’s default search engine, and warranties.

Apple emphasized in its publication that international sales accounted for 64% of the company’s revenue, up from 61% in the same quarter last year. How new iPhone models are faring in China, the company’s third largest market, is a constant topic of debate among investors.

“China was strong across the board,” said Cook.

Apple also declared a cash dividend of $ 0.205 cents a share and said it had spent more than $ 30 billion in total shareholder returns during the quarter, including stock repurchases.

Apple’s first fiscal quarter is typically the largest of the year and includes major Christmas sales in the month of December.

Wednesday’s eruptions are also a recovery story for Apple. Two years ago, Apple warned that the forecast for sales in the holiday quarter was lower than the company expected, a rare warning that raised the question of whether Apple was losing momentum. On Wednesday, Apple announced that sales have increased by more than 40% since that report.