Apple Inc. (NASDAQ: AAPL) – Apple Revenue Snapshot: On Track To $ 100 Billion In Revenue With Strong iPhone 12 Adoption

Apple Inc (NASDAQ: AAPL) is on track to report an exceptional quarter, following the trend in iPhone sales. The company is expected to release its results for the first quarter of fiscal 2021 on Wednesday after the market closes.

Record revenues, EPS in sight: Analysts, on average, estimate that Apple will report first-quarter earnings of $ 1.41 per share on revenue of $ 103.28 billion.

Loup Venture’s Gene Munster is above consensus, with famed Apple analyst estimating 19% year-over-year revenue growth compared to the 16.70% growth Street models.

The company’s revenue is expected to surpass the $ 100 billion mark for the first time in its history, with the strength of the iPhone supporting much of the rise.

Apple launched its latest iteration of the iPhone, dubbed the iPhone 12, late last year. The company has launched a delayed, phased launch of the iPhone 12, which comes in four variations. All four models are 5G compatible.

Related Link: 10 Things Apple Investors Might Want In 2021

Other metrics: Construction of the iPhone in the quarter is estimated to be around $ 90 million, Wedbush analyst Daniel Ives said in a note, citing supply chain estimates.

Munster sees iPhone revenue share in total revenue increase to 59% in the first quarter from the typical 50% range. He expects iPhone revenue to rise 16% to $ 64.9 billion from Street’s estimate of $ 59.4 billion.

Service revenues, which account for 14% of sales, could have increased 18% year-on-year to $ 15 billion, analysts estimate.

Munster expects Apple to exit the December quarter with total cash of $ 185 billion, including $ 112 billion in debt and $ 73 billion in net cash.

Forward Outlook: For the March quarter, Apple is expected to post EPS of 91 cents on revenue of $ 74.54 billion. Consensus estimates for fiscal 2021 project EPS of $ 4.03 on revenue of $ 318.9 billion.

Munster sees the acceleration of digital transformation serving as a tailwind for Apple’s revenue growth for the next several years.

Ives said Apple has the potential to sell more than 240 million iPhone units in 2021, which could surpass the previous record of 231 million units set in fiscal 2015.

AAPL stock: Apple shares ended 2020 with a gain of around 82% to $ 132.69. After experiencing some weakness at the start of the year, the stock has come back and is trading with a modest gain of 4.8% for the cumulative time of the year.

Apple’s valuation broke the $ 2 trillion mark in August, and if the company continues to run at that rate, a market cap of $ 3 trillion is on the horizon over the next 12 months.

Apple shares closed Tuesday’s session at $ 143.16.

(Photo by Shiwa ID on Unsplash)