Apple Reports Record iPhone Sales Amid Booming Chinese Demand

Apple beat Wall Street analysts’ high expectations by posting a new all-time high for the holiday quarter. The company has seen a boom in iPhone updates in China and strong growth in each of its segments.

Apple (AAPL), the largest public company in the United States by market capitalization of nearly $ 2.4 trillion, more than met market experts’ high forecasts for sales during the holiday quarter.

For the first quarter of fiscal 2021 ending last month, Apple reported a 34% rise in earnings per share to $ 1.68, $ 0.27 better than analysts’ estimates of $ 1.41.

Total revenue grew 21% to $ 111.4 billion, also surpassing Wall Street’s median forecasts of $ 103.28 billion. Apple’s quarterly revenue and earnings statistics for the last 2 years are available here.

Apple’s international sales accounted for 64% of revenue for the quarter. Greater China sales totaled $ 21.31 billion versus $ 13.6 billion last year, the highest in Apple’s history in the region.

IPhone sales in Q1 2021 FY of the year

Analysts noted that the success in China was driven by the new iPhone 12s with 5G and the failures of domestic Huawei (Huawei shares lost 41% after the US sanctions deprived the company of access to key suppliers and manufacturers of chips).

IPhone sales for the holiday quarter rose 17% to $ 65.6 billion, $ 5 billion more than analysts expected. The figure was 59% of Apple’s total revenue.

Apple did not disclose the number of sales, but according to research firm IDC, shipments reached 90.1 million phones. This is a record for any quarter in Apple’s history and covers 23.4% of the global market share.

Sales of Mac, iPad, Wearable Devices and Apple Services

Mac sales jumped 21% to $ 8.7 billion. IPad tablet sales rose 41% to $ 8.4 billion. The trends in telecommuting and homeschooling fueled by the coronavirus pandemic boosted sales in both product categories.

Wearables, Home & Accessories, which includes Apple Watch smartwatches, wireless AirPods, smart speakers and more, rose 30% to nearly $ 13 billion. New Apple Watch and AirPods boosted sales during the quarter …

Apple’s services business grew 24% to $ 15.76 billion. Apple services include the App Store, iCloud, Apple Pay, Apple Music, Apple TV + and others.

Going forward, this category should continue to grow as Apple celebrates “record high installed base of active devices.”

Luca Maestri, Apple’s chief financial officer, said: “These results helped us generate a record operating cash flow of $ 38.8 billion. We also returned over $ 30 billion to shareholders during the quarter.”

Apple shares, which have gained nearly 80% in the past 12 months, are down after the quarterly results were announced, possibly due to a lack of forecasts for investors.

Apple has declined to make predictions since the Covid-19 pandemic began in early 2020, citing the terms of uncertainty that the company did not provide sales and profit forecasts for the current quarter.

Analysts, in turn, predict Apple in the 2nd quarter earnings of $ 0.91 per share on sales of $ 74.54 billion. A year earlier, Apple’s profit was $ 0.64 per share on sales of $ 58.31 billion.

On Wednesday, Apple issued a press release, according to which new “sensational” updates to privacy settings in the operating systems of its devices will appear only “in early spring.”

These updates have raised concerns from Facebook (FB) and other companies that make money from targeting ads and could suffer severe losses if users deny an app access to their data.

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