Apple tops $100 billion in revenue for the first time as iPhone, iPad sales surge

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Get ready for Apple’s first $100 billion quarter in history


Apple Inc. posted its highest quarterly revenue total yet as the new iPhone 12 powered the company to its first $100-billion quarter in sales.

The smartphone giant generated revenue of $111.4 billion in its fiscal first quarter, up from $91.82 billion a year earlier and far ahead of the FactSet consensus forecast, which called for $103.27 billion.

Shares of Apple
AAPL,
-0.77%

were off 0.7% in after-hours trading Wednesday following the report.

Though Apple’s newest line of iPhones was only available for part of the holiday quarter, the company still grew smartphone sales, recording $65.60 billion in sales for the category compared with $55.96 billion a year earlier. Analysts were modeling $59.53 billion in iPhone sales.

Overall, Apple reported net income of $28.76 billion, or 1.68 a share, up from $22.24 billion, or $1.25 a share, in the year-prior period. Analysts expected $1.42 a share in earnings.

Apple continued to benefit from strong demand for products that could help in remote work and schooling settings. The company saw iPad revenue climb to $8.44 billion from $5.98 billion as Mac revenue increased to $8.68 billion from $7.16 billion. Analysts had been projecting $7.38 billion in iPhone sales and $8.68 billion in Mac sales.

The services business grew as well, reaching $15.76 billion in the December quarter, up from $12.72 billion. Sales from Apple’s wearables, home, and accessories category climbed to $12.97 billion from $10.01 billion. The FactSet consensus called for $15.17 billon in services revenue and $11.49 billion for the wearables category.

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Apple didn’t offer financial guidance in its earnings release, in line with past patterns during the pandemic. Analysts tracked by FactSet are modeling $74.05 billion in March-quarter sales and 91 cents in earnings per share for the period.

Shares of Apple have gained 7.6% in the week leading up to this earnings report, which would be its largest one-week gain prior to earnings since at least 2011, according to Dow Jones Market Data.

See also: AT&T sees strong wireless growth but pandemic still weighs on film business

Apple shares typically rise in the week and month leading up to earnings, but they’ve historically fallen in the week and month following a report. Over the past 10 years, Apple shares have dropped 1.9% on average in the week after an earnings report and fallen 2.5% in the month after a report, per Dow Jones Market Data.

Shares have gained 84% over the past year as the Dow Jones Industrial Average
DJIA,
-2.05%

has risen about 6%.



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