Apple reports blowout first quarter, generating more than $100 billion in revenue

Apple (AAPL) on Wednesday reported its largest quarter by revenue for the first time, at $111.4 billion. The result of the tech giant’s first-quarter earnings report for fiscal 2021 helped Apple to cross the symbolic $100 billion mark, sales were also up 21% year over year.

In extended trading, shares of Apple dropped 2%, nonetheless, the company has begun the year on strong.

Apple’s results for the quarter that ended December was mostly driven by the sales of the 5G iPhones. Also, sales for every product category doubled in a digit percentage point. The tech giant’s revenue and earnings per share, by far, beat Wall Street expectations.

Tim Cook, Apple CEO said the results would have performed better it wasn’t for the COVID-19 pandemic and global lockdowns that temporarily closed down some Apple stores around the world.

Here’s how Apple Company performed in the first quarter:

·        Earnings per share (EPS): $1.68, vs $1.41 Refinitive estimate

·        Revenue: $111.44 billion vs. $103.28 billion Refinitive estimate

·        iPhone revenue: $65.60 billion, vs $59.80 billion Refinitive estimates, up 17% year over year

·        Services revenue: $15.76 billion, vs $14.80 billion estimated, up 24% year over year

·        Other Apple products revenue: $12.97 billion, vs $11.96 analysts’ estimates, up 29% year over year

·        Mac revenue: $8.68 billion vs, $8.69 billion estimated, up 21% year over year

·        IPad revenue: $8.44 billion vs $7.46 billion Refinitive estimates, up 41% year over year

·        Gross margin: 39.8% vs 38.0% estimated

“Taking the stores out of the equation, particularly for iPhones and wearables, there’s a drag on sales,” Cook told CNBC. He added that Apple’s total install base for its iPhones is over 1 billion, higher than the previous 900 million. Apple’s total active install base for all its products is 1.65 billion.

While Apple celebrates its $100 billion sales mark, it did not provide official guidance for the next quarter. The company hasn’t also given investors forecasts since the wake of the coronavirus pandemic. Without a doubt, Apple’s blowout quarter is a good sign for investors.

In the just-reported quarter’s result, about 58% of the total revenue was generated from the sales of the new iPhone 12 models which were released in October 2020.

“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide,” said Cook. “We’re gratified by the enthusiastic customer response to the unwatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we’re part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.”

The new iPhone 12 models are the first to include the 5G network, which investors strongly believe could drive a “supercylce” of users seeking an upgrade. Cook said the iPhone models are “full of features that customers love, and they came in at exactly the right time, with where 5G networks were.”

Apple stock(AAPL) is trading at $134.88 per share, the stock's 52 weeks high is $145. With this earning report, Apple stock could be a big winner for the year 2021.  

The stock did well last year, after the stock split it soar higher and is positioned to do better this year. Says Apple analysts.