appeal (NASDAQ: AAPL) reported the results for the fiscal first quarter (ended 26 December 2020). To say it was an eruption would not be hyperbole. Revenue grew 21% year-on-year to a record $ 111 billion. This growth led to earnings per share (EPS) of $ 1.68, a 35% increase which also set a new high water mark.
Analysts’ consensus estimates were for revenue of $ 103 billion and the EPS of $ 1.42.
Image source: Apple.
Record performance by various segments helped advance the results. Apple reported that the iPhone, carrier and service segments each delivered record sales.
iPhone sales of nearly $ 66 billion led to the instant results. The figure was $ 5 billion more than expected and accounted for 59% of Apple’s total revenue. Service growth also rose 24% year-on-year to $ 15.76 billion, while meeting expectations of $ 14.89 billion. The company also generated a record cash flow of $ 38.8 billion.
While Apple had strong growth in its geographic segments, it was sales in Greater China that stole the show. Revenue in the region rose 57% year-on-year as Chinese consumers unveiled the new iPhone 12 models, the first to offer next-generation 5G capability.
“Our operating performance in December in the second quarter was driven by the double-digit growth in each product category, which set the all-time revenue records in our geographic segments, and a high point for our installed active device base,” says Luca Maestri, Apple’s chief financial officer.
On the heels of a bullish call earlier this week, analyst Daniel Ives of Wedbush Securities called the results a ‘jaw dropper’ and a ‘kick-start’ to the 5G supercycle, surpassing even the most bullish expectations. He further stated that ‘[Apple CEO Tim] Cook & Co. has set the stage for a renaissance of growth … which looks like it’s the previous iPhone record set in [fiscal year 2015]. ”