Apple sees accelerating revenue growth after setting iPhone sales record

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Apple has reported holiday quarter sales and profits that beat Wall Street expectations, as brand new 5G iPhones helped push handset earnings to a new record and sparked a 57 percent increase in China sales.

Apple shipped its iPhone 12 line-up several weeks later than usual, but an enlarged number of models and new appearance tapped pent up demand for updates, especially in China. The business also posted strong sales of its Mac laptops and iPads in the past, driven by consumers working, learning and playing from home throughout the pandemic.

Apple's earnings for the quarter ended on the 26th of December climbed 21% to $111.44 billion. Earnings per share climbed to $1.68 from $1.25, beating Wall Street targets, according to IBES data from Refinitiv. Revenue of iPhones were $65.60 billion and also beat a record set three years back.

CFO Luca Maestri told investors that revenue growth was likely to accelerate on a year-over-year basis in the present fiscal second quarter and gross margins were likely to be similar to the financial first quarter's rate of 39.7%. In addition, he said the company's services segment revenue faced a challenging comparison to the year before, once the pandemic lifted sales, and that year-over-year growth in the organization's wearables section would slow.

Shares of Apple were down 2.6% at $138.33 in after-hours trade after the report but have risen nearly 12% since the 15th of January. Apple shares rose 85% over the previous year, versus 46 percent for the Nasdaq 100, where it is a part.

Apple, the largest US listed public company by market capitalization of $2.4 trillion, has thrived through a pandemic that forced it to shutter many of its stores but prompted many consumers to get or upgrade devices.

Apple's CEO Tim Cook told journalists in an interview that the company currently has a busy installed base of 1.65 billion apparatus, compared with 1.5 billion devices per year ago. Cook also said Apple now has an installed base of more than 1 billion iPhones, a rise over the 900 million the firm most recently disclosed in 2019.

China proved a powerful market for iPhone, together with total sales there increasing 57% to $21.31 billion.

"We had two of the top three selling smartphones in urban China," Cook told journalists at our partner news agency Reuters in an interview, adding that "upgraders in particular set an all-time record in China."

Revenue of iPads, wearable and services topped Wall Street targets. IPad revenue was $8.44 billion along with the professional services industry, which includes its new Apple One package of television, cloud and music storage solutions, had $15.76 billion in earnings.

Cook told Reuters that sales of Macs, iPads and the iPhone 12 Pro version ran into "supply constraints." He said that "semiconductors are very tight" but that other regions of the supply chain contributed to the limitations too.

Apple has 620 million paying subscribers on its stage, before its target to get 600 million subscribers at the end of 2020,'' Cook said.

The services section also includes sales from Apple's App Store, whose charging practices have become a flashpoint of conflict using "Fortnite" creator Epic Games and whose privacy rules have ticked off a public spat with Facebook.

Apple's wearables and accessories section, which contains the Apple Watch and AirPods product lines, reach $12.97 billion in revenue. Apple in December released the AirPods Max, a $550 pair of over-ear wireless cans, with shipment dates stretching months to the future within hours of their product's launch. Tim Cook said short supplies of the AirPods Max could continue in the company's current financial second quarter.

The team at Platform Executive hope you have enjoyed this news article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Stephen Nellis in San Francisco. Additional reporting by Subrat Patnaik in Bengaluru. Editing by Lisa Shumaker and Peter Henderson.

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