Apple’s revenue jumps to a record £81 billion in the first quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Jan 27, 2021
  • Apple’s revenue jumps to a record £81 billion in the fiscal first quarter.
  • The tech giant generates £47.91 billion of revenue from iPhones in Q1.
  • The U.S. company refrains from giving future guidance on Wednesday.

Apple Inc. (NASDAQ: AAPL) said on Wednesday that its sales topped £75 billion for the first time in history on the back of robust demand for its all-new iPhone 12. The technology giant reported £81.36 billion of revenue in the fiscal first quarter versus the year-ago figure of £67.06 billion.

Apple shares were reported more than 0.5% down in after-hours trading on Wednesday. The iPhone maker said that its net income in the first quarter printed at £21.01 billion that translates to £1.23 per share. In the comparable quarter of last year, Apple’s net income stood at a lower £16.24 billion or 91 pence per share.

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According to Refinitiv, experts had forecast the company to record £75.43 billion of revenue in Q1. Their estimate for per-share earnings was capped at a lower £1.04. In separate news from the United States, Automatic Data Processing also published its quarterly financial results on Wednesday.

Apple generates £47.91 billion of revenue from iPhones

According to the American multinational, it generated £47.91 billion of revenue from iPhones in the recent quarter that represents a 17% year over year growth. Analysts, on the other hand, had expected a lower £43.68 billion of iPhone revenue. iPhone sales had come in 20.7% lower in the prior quarter (Q4).

Services revenue, as per the Cupertino-based company, registered at £11.51 billion or 24% higher than last year. At £9.47 billion, other products revenue jumped 29% on an annualised basis in the fiscal first quarter.

Consensus estimates for revenue from these two segments stood at £10.81 billion and £8.74 billion, respectively.

Other prominent figures in Apple’s earnings report

Other prominent figures in Apple’s earnings report on Wednesday include £6.34 billion of Mac revenue – a 21% increase as compared to the same quarter last year. iPad revenue, Apple said, saw a 41% growth in Q1 to £6.16 billion.

Experts, on the contrary, had predicted a marginally higher £6.35 billion of Mac revenue in the recent quarter and a lower £5.45 billion if iPad revenue. The tech firm reported an increase in its gross margin from 38% to 39.8% in Q1.

Apple refrained from giving its financial guidance for the future on Wednesday. FactSet Consensus for its per-share earnings and sales in the second quarter currently stands at 66.46 pence and £54.08 billion, respectively. At the time of writing, Apple Inc is valued at £1.75 trillion and has a price to earnings ratio of 43.37.

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