The tech giant reported second-quarter revenue of $ 89.6 billion, up 54% from the same period in 2020.
Apple Inc. reported quarterly revenue that crushed expectations on Wall Street, fueled by sales of the 5G iPhone 12 line and purchases of iPads and Macs as people continued to work and learn from home.
The Cupertino, Calif.-Based tech giant reported second-quarter revenue of $ 89.6 billion, up 54% from the same period in 2020. Analysts on average estimated $ 77.3 billion, according to data compiled by Bloomberg. Profit was $ 1.40 per share, also easily beating Wall Street forecasts.
“IPad and Mac sales have almost doubled, which shows the strength of the PC market and education channels,” said Shannon Cross, analyst at Cross Research. “These results also show their mastery of the supply chain and their ability to outsmart competitors.”
The world’s largest tech company flourished mostly during the pandemic. Supply chains were disrupted early last year, but millions of people were forced to work and study from home, boosting demand for iPhones, iPads and computers Mac. Now that vaccinations are rampant and some consumers are returning to work and school, Apple will have to work hard to keep interest in its devices so high.
“This quarter reflects both the sustainable ways our products have helped our users live this moment in their lives, as well as the optimism consumers seem to be feeling about better days for all of us,” said Tim Cook, Apple CEO, in a statement.
The stock rose about 3% in extended trading, after closing at $ 133.58 in New York. Stocks have lagged behind other big tech companies so far this year.
As has been the case for several quarters, Apple has not provided a forecast for the current quarter.
The iPhone 12 went on sale during the holiday quarter, but sales of the smaller iPhone 12 mini and the more expensive iPhone 12 Pro Max didn’t start until November. This means that the second fiscal quarter was the first full fiscal year for this new line of 5G handsets. Apple has also rolled out new MacBook Pros, Mac mini, MacBook Airs, new AirPods, new iPads, and updated Apple Watches.
“These results allowed us to generate operating cash flow of $ 24 billion and return nearly $ 23 billion to shareholders during the quarter,” said Luca Maestri, CFO of Apple. “We are confident in our future and continue to make significant investments to support our long-term projects and enrich the lives of our clients.”
The company increased its dividend by 7% and increased its share buyback program by an additional $ 90 billion.
Apple reported $ 7.8 billion in iPad revenue, beating Wall Street expectations of $ 5.65 billion. It also sold a record $ 9.1 billion Macs, beating estimates of $ 6.8 billion. The company will begin shipping new iPad Pro models and a revamped iMac with its own chip later in May, potentially propelling both lines into the current quarter.
The services generated a record revenue of $ 16.9 billion, beating estimates of $ 15.6 billion. Late last year, Apple rolled out Apple One service bundles and new offerings like the Fitness + workout offering.
The company’s home, wearables and accessories business generated $ 7.8 billion in revenue in the second quarter of the fiscal year. This exceeds analysts’ estimates of $ 7.5 billion. The category includes AirPods, Apple TV, HomePod speaker, dongles, and other accessories for major Apple devices.
Apple’s revenues have grown significantly in each of its major geographies, with significant year-over-year growth in China and Europe.