Apple smashed Wall Street expectations for the first three months of 2021, reporting its highest-ever revenue for a March quarter.
For the quarter ended March 27, the company reported revenue of $89.6 billion, up 54% on surge of iPhone sales, and net income of $23.6 billion (earnings per share of $1.40).
Apple reported revenue records in each of its geographic segments and double-digit growth in each of its product categories — with the recently launched iPhone 12 driving up sales of the company’s smartphone devices nearly 66%, to $47.9 billion.
Its Services segment revenue was $16.9 billion, up 27%. Apple’s Services segment includes App Store, Apple Pay and subscription services including Apple Music and Apple TV Plus.
Wall Street analysts on average expected revenue of $77.35 billion and earnings per share of 99 cents for the quarter, Apple’s Q2 of fiscal 2021.
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“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” Tim Cook, Apple’s CEO, said in a statement.
Apple is coming off its record quarter at the end of of 2020 — raking in a booming $111.4 billion in sales, driven by its highest-ever sales of iPhones.
Next month, as part of an effort to boost services revenue, Apple is set to launch podcast subscriptions with initial partners including NPR, Luminary, QCode, Tenderfoot TV and Sony Music Entertainment. Apple will keep 30% of subscription fees for the first year and 15% in following years, in line with its App Store fees for in-app purchases. Spotify countered with its own podcast-subscription program, which lets creators keep all revenue until it kicks in a 5% free in 2023.
Also at last week’s “Spring Loaded” event, the company announced an upgraded version of the Apple TV 4K set-top, its first refresh of the product since 2017. The new $179 box features Apple’s A12 Bionic chip and brand-new remote that uses a click-pad for primary navigation. It now supports high frame rate HDR (high dynamic range) and Dolby Vision video to play back video at 60 frames per second.
Meanwhile, Apple on Monday said it would invest more than $430 billion in the U.S. over the next five years, a spending target up 20% over prior projections. As part of that, the company plans to expand its Culver City, Calif., outpost to more than 3,000 employees by 2026 as well as “dozens” of Apple TV Plus productions in 20 states over the same time span.
Apple, the world’s biggest tech company by revenue, currently has a market cap of about $2.2 trillion.