Apple iPhone 12 Generated Biggest Revenue and Profits in Company History

Apple iPhone sales hit their all-time high, as enthusiastic fans grabbed the company’s new iPhone 12 during the holiday shopping season, despite the continued spread of the coronavirus.

Apple’s three months of fiscal first quarter included the launch of its new series of phones, ranging from the $ 699 iPhone 12 Mini to the $ 1,099 iPhone 12 Pro Max. But that was not all that was happening. The company has also expanded its line of computers with new custom chips similar to those that power its iPhones and iPads. And Apple has expanded its services with the Apple Fitness Plus digital health class offering at $ 10 per month and its Apple One bundle, providing access to its TV, music, and data storage services from $ 15. $ per month.

In total, Apple said it reported profits of nearly $ 28.8 billion, up about 30% from the same period last year. That translates to earnings of $ 1.68 per share, up from $ 111.4 billion in overall revenue, which itself was up more than 21% from the $ 91.8 billion reported in the year. last. It was also enough to beat analysts’ average estimates, which were $ 1.41 per share in earnings, against $ 103.3 billion in revenue, according to surveys released by Yahoo Finance.

For Apple, it all added up to the biggest profits and business revenue ever. It also brought Apple’s revenue to over $ 100 billion for the first time.

“It is not far from us that this result ends the most difficult year that any of us can remember,” Apple CEO Tim Cook said during an investor call on Wednesday. “It is an understatement to say that the challenges it posed to Apple as a business were pale in comparison to the challenges it posed to Apple as a community of individuals, employees, their families and communities in which we live and love to call home. “

“These results demonstrate the central role our products have played in helping our users meet these challenges,” Cook added.

Apple’s stock closed regular trading down nearly 1%, at $ 142.06 per share, and fell almost another 2% in after-hours trading. Shares of the company have risen nearly 10% so far this year.

Apple’s growth shows how much we’ve all come to rely on tech companies in the midst of the COVID-19 pandemic. As the disease disrupts billions of lives around the world, forcing many people to self-quarantine at home, we have turned to computers, smartphones, social media and collaboration software to help us keep going. to work and learn.

Earlier Wednesday, Facebook posted a strong increase in income profits exceeding expectations. Amazon has experienced “record demand” over the past year, and particularly during the holiday shopping season, as people have chosen to shop online rather than brave possible infection in stores. Google and its parent company, Alphabet, have also beaten Wall Street’s optimistic expectations, as marketers spend a lot to get people’s attention online.

And Slack, the business collaboration app, was sold to software giant Salesforce for $ 28 billion, nearly double its value before it went public in 2019.

Cook said Apple is working to help its communities recover in create programs to encourage students to study technology and new developers to build applications. It’s also money invested to help promising new startups.

“We are doubly aware that the work that awaits all of us to overcome the end of this pandemic, to restore normal life and prosperity to our neighborhoods and our local economies, and to build with a sense of justice is deep and urgent “Cook said.

Reach new records

Apple didn’t just seem to navigate the pandemic, it became a central response. Each of Apple’s businesses saw double-digit growth, showing how people turned to its entertainment, health, and education-focused products throughout the year.

The iPhone in particular saw strong growth, reaching $ 65.6 billion in sales, up more than 17% from the $ 56 billion reported last year. And this despite some iPhone models being still hard to find since their launch in October.

“We had a record number of device activations in the last week of the quarter,” Cook said, adding that Apple has 1 billion active iPhone users worldwide. And, he says, they use Apple’s services in addition to their devices. “And as COVID-19 pulled us apart, we saw the highest volume of FaceTime calls ever this Christmas.”

Apple has said it should have enough iPhones to meet demand by the end of March.

Although the iPhone has played a remarkable role in Apple’s business, each of the company’s other divisions recorded revenues that grew by at least 20%. This included its Mac business, which reached nearly $ 8.7 billion in sales; iPad, which rose to $ 8.4 billion; and “clothing, home and accessories” like AirPods and HomePods, which reached nearly $ 13 billion.

Apple’s service business, which includes the $ 5 per month Apple TV Plus subscription service and the new $ 10 per month Apple Fitness Plus, has grown to over $ 15.7 billion.

All of this has contributed to Apple’s cash stack, which now stands at over $ 195 billion.

Cook acknowledged that Apple’s success contrasts with suffering in the rest of the world.

“Entire areas of our lives that we took for granted – schools for our kids, meeting our colleagues, small businesses that have lasted for generations – are simply gone,” said Cook. “It will take a society-wide effort in the public and private sectors – as individuals and communities, each of us – to ensure that what lies ahead is not simply the end of a disease, but the beginning of something lasting and hopeful. “

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