Apple’s iPhone 12 led to the largest revenue and profit in company history

Apple’s iPhone sales have risen to their highest point ever as eager fans grabbed the company’s new iPhone 12 during the holiday season, despite the continued spread of the coronavirus.

The three months of Apple’s fiscal first quarter include the launch of its new range of phones, ranging from the $ 699 iPhone 12 Mini to the $ 1,099 iPhone 12 Pro Max. However, that was not all that happened. The company has also expanded its computer range with new custom chips, similar to those that power the iPhones and iPads. And Apple has expanded its services with the Apple Fitness Plus digital health class offering of $ 10 per month and the pricing of Apple One, which offers access to TV, music and data storage services from $ 15 per month.

Apple said profits rose nearly $ 28.8 billion, about 30 percent more than in the same period last year. That equates to $ 1.68 per share in profit, from $ 111.4 billion in total revenue, which itself increased by more than 21% from the $ 91.8 billion reported last year. That was also enough to beat analysts’ average estimate of $ 1.41 per share in earnings from $ 103.3 billion in revenue, according to surveys published by Yahoo Finance.

For Apple, this is the largest corporate profit and revenue it has ever had. It also cost Apple more than $ 100 billion for the first time.

“It’s not far from our minds that this result is the most challenging year any of us can remember,” Apple CEO Tim Cook said in a call with investors on Wednesday. ‘It’s an understatement to say that the challenges it posed to Apple as a business were delightful compared to the challenges it posed to Apple as a community of individuals, employees, their families and the communities. in which we live and what we would like. call home. ‘

“These results demonstrate the important role our products have played in helping users respond to these challenges,” Cook added.

Apple’s share closed the normal trade with almost 1% to $ 142.06 per share and in the after-hours trade fell by almost another 2%. The company’s shares have risen by almost 10% so far this year.

Apple’s growth highlights how much we have all relied on technology ventures amid the COVID-19 pandemic. As the disease increases billions of lives around the world and forces many people to quarantine at home, we have turned to computers, smartphones, social networks and collaborative software to help us work and learn.

Earlier Wednesday, Facebook achieved a large increase in revenue because the earnings exceeded expectations. Amazon has seen ‘record demand’ over the past year, and especially during the holiday season, as people prefer to shop online rather than venture into possible contamination in stores. Google and its parent company, Alphabet, also fared better than Wall Street’s rosy expectations, as marketers spend a lot to get people’s attention online.

And Slack, the business collaboration app, was sold for $ 28 billion to software giant Salesforce, which was nearly twice its value before it became known in 2019.

Cook said Apple is working to restore its communities creating programs to encourage students to study technology and new developers to make programs. Money has also been invested to help new businesses.

“We are doubly aware that the work ahead of us to navigate the end of this pandemic, to restore normal life and prosperity in our neighborhoods and local economies, and to build with a sense of justice, is deep and urgent. is, “Cook said. .

Save new records

Apple not only tried to navigate the pandemic, it became a central response to it. Each of Apple’s businesses has grown at double-digit rates, and it has shown how people have been turning to their entertainment, health and education-oriented products throughout the year.

The iPhone in particular showed strong growth, with sales of $ 65.6 billion, which is more than 17% higher than the $ 56 billion it reported last year. And this despite the fact that some iPhone models have been difficult to find since its launch in October.

“We had a record number of device activations in the last week of the quarter,” Cook said, adding that Apple has 1 billion active iPhone users worldwide. And, he said, they use Apple’s services in addition to their devices. “And because COVID-19 loved us, we saw the highest volume of FaceTime calls ever this Christmas.”

Apple said it should have enough iPhones to meet demand by the end of March.

Although the iPhone was a notable part of Apple’s business, each of the other divisions of the company reported revenue that increased by at least 20%. These include its Mac business, which generated nearly $ 8.7 billion in sales; iPad, which has grown to $ 8.4 billion; and ‘wearables, home and accessories’ such as AirPods and HomePods, which grossed nearly $ 13 billion.

Apple’s services business, which includes the Apple TV Plus subscription service of $ 5 per month and the new Apple Fitness Plus of $ 10 per month, has risen to more than $ 15.7 billion.

All that contributed to Apple’s cash stack, which now amounts to more than $ 195 billion.

Cook acknowledged that Apple’s successes contrasted with suffering in the rest of the world.

“Whole parts of our lives that we took for granted – schools for our children, meetings with our colleagues, small businesses that lasted for generations – have simply disappeared,” Cook said. ‘It will take a societal effort in the public and private sectors – as individuals and communities, each of us – to ensure that what lies ahead is not just the end of a disease, but the beginning of something lasting and hopeful. . “

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