Apple (AAPL) beats quarterly estimates, winning against a supply-chain crunch fueled by the pandemic and chip shortages. Sales climbed 11% to a record of $123.9 billion in the fiscal first quarter, beating analyst estimates of $119.1 billion on average. Earnings increased to $2.10 a share in the first quarter ending December 25, above the $1.90 estimated by analysts.
Key Highlights:
- The iPhone maker reported that 1.8 billion Apple devices are currently in use, up 300 million from two years ago.
- 785 million paid Apple and third-party subscriptions on its platform were reported, up from 745 million reported in the previous quarter.
- The company’s flagship product, the iPhone generated $71.6 billion in revenue beating Wall Street estimates of $67.7 billion.
- The iPad brought in $7.25 billion in the first quarter, compared with an estimate of $8.1 billion.
- Apple generated $19.5 billion in services revenue in the first quarter, exceeding expectations of $18.6 billion. The category grew 24% from a year earlier on strong Apple Music, App Store, and iCloud subscription sales.
- The wearables, home, and accessories unit that includes the Apple Watch, Apple TV, AirPods, Beats headphones, the HomePod, and other items, produced $14.7 billion during the quarter. That was up 13% from a year earlier and above the average estimate of $14.2 billion.
- The company also reported about $10.9 billion in Mac sales, beating the estimate of $9.5 billion, which climbed 25% from the year-ago period.
Apple didn’t give a specific sales target, beyond saying it would be a record for the period, however, analysts are predicting that revenue will top $90 billion. The gross margin will be 42.5% to 43.5%, Apple informed.
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it. To learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page.
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