Apple ended 2020 on a bang, having its most profitable quarter ever despite the disruption caused by the pandemic.
In the three months to December, the iPhone maker achieved record sales of $ 111.4 billion. It is the first time in a quarter that Apple has passed the symbolic mark of $ 100 billion.
Analysts had expected the Cupertino, California-based company to do well thanks to the holiday season and debut from iPhone 12 in October, The company is offering a new look, 5G connectivity for cellular data and new models in several sizes at different prices.
But the company has exceeded Wall Street’s high expectations. For the period ended December 26, Apple’s earnings rose 29 percent to $ 28.8 billion, or $ 1.68 per diluted share. Revenue rose 21 percent to $ 111.4 billion. Wall Street had forecast earnings per share of $ 1.41 on sales of $ 103.3 billion.
Apple CEO Tim Cook praised the “innovative work” of his team and the “innovative products” the company delivered over the holidays.
For Apple, the holiday quarter is always a closely monitored period that accounts for around 30 percent of annual sales. But the stakes were even higher this year with the arrival of the iPhone 12 and the COVID-19 outbreak delayed production from Apple’s flagship.
The pandemic forced Apple to postpone the traditional September launch date to October. This means that some versions of the new phone didn’t ship to customers until November, which shortens the number of weeks Apple typically has during that period to record sales ahead of Christmas.
Cook noted that the results would have been even better had it not been for the coronavirus pandemic and lockdowns that forced Apple to temporarily close some Apple stores around the world.
The executive pointed to strong growth in his product line – not just booming iPhone sales – for the strong results. And Apple saw double-digit increases in all product categories as the pandemic spikes demand for products and services for the home computer.
Sales of iPhones rose 17 percent to $ 65.6 billion. Mac sales rose 21 percent to $ 8.7 billion, while iPad sales rose 41 percent to $ 8.4 billion.
The company’s revenue from services like Apple + TV and Apple Music grew 24 percent to $ 15.8 billion. Other product sales increased 29 percent to $ 13 billion.
While Apple’s products consistently showed strength, analysts returned to the iPhone 12, the first Apple with 5G connectivity. Dan Ives, an analyst at Wedbush, said the new phone would launch a retail Supercyle that would see consumers who clung to their older iPhones upgrade en masse to get their hands on the latest cellular connectivity technology to get.
“We firmly believe that the Supercycle hype for the iPhone 12 has become a reality this week, giving the street its first glimpse into underlying iPhone 12 demand and key comments [Apple CEO Tim Cook] I’m looking ahead to the next few quarters, ”he said.