Apple (AAPL) has publicly announced its earnings for the fiscal quarters of January, February, and March of 2021. Apple posted $89.6 billion in sales and $23.6 billion in profit for the quarter. This compares to the company’s revenue of $58.3 billion and profit of $11.25 billion in the same period last year.
Apple boasts that both the Mac and Services categories have set new all-time quarterly sales highs. Overall revenue for the March quarter is a milestone. For the year, Apple’s gross margin was 42.5 percent.
Apple did not offer guidance for the second quarter of 2021 due to the COVID-19 pandemic, but analysts maintained their expectations. Analysts predicted year-on-year sales growth ranging from 32.2 percent to 36.8 percent, with revenue ranging from $77.1 billion to $79.77 billion. Apple outperformed those projections.
Apple also increased its dividend and increased its share repurchase program by $90 billion.
Apple’s board of directors has announced a cash dividend of $0.22 per share of common stock, a 7 percent raise. The dividend will be paid on May 13, 2021, to shareholders who were on the books as of the close of business on May 10, 2021. The board of directors has also approved a $90 billion expansion in the current share repurchase program.
Apple CEO Tim Cook had the following to say about the company’s growth in the second quarter of 2021:
“This quarter represents both the long-lasting ways our goods have helped our customers meet this moment in their own lives, as well as the excitement consumers, seem to feel about better days ahead for all of us,” said Apple CEO Tim Cook. “Apple is in the midst of sweeping innovation through our product portfolio, and we’re focusing on how we can support our teams and the communities where we work evolve from this pandemic into a better future. That starts with devices like the all-new iMac and iPad Pro, but it also includes initiatives like the 8 gigawatts of new renewable energy we’ll help put onto the grid and our $430 billion investment in the United States over the next five years.”
And CFO Luca Maestri stated:
“We are pleased with our March quarter results, which included revenue records in each of our geographic segments and strong double-digit growth in each of our product categories, driving our installed base of active devices to an all-time high,” said Apple CFO Luca Maestri. “These results allowed us to achieve $24 billion in operating cash flow and return nearly $23 billion to shareholders during the quarter. We are optimistic about the future and will continue to make substantial investments to help our long-term goals and improve the lives of our customers.”
Following Apple’s earnings announcement, AAPL stock is up more than 3% in after-hours trading.
AAPL earnings by-product:
Apple does not announce unit sales for any of its hardware products, as has become customary. Instead, it provides a sales breakdown by product segment. Here are the figures for the fiscal second quarter of 2021:
- $47.94 billion: iPhone (Up 65%)
- $9.1 billion: Mac (Up 70% YOY)
- $7.81 billion: iPad (up 79% YOY)
- $7.84 billion: Wearables, Home, and Accessories (Up 24% YOY)
- $16.9 billion: Services (Up 26% YOY)
Quarterly revenue for iPhone was $47.9 billion, up 65.5% from the year-ago quarter
Apple CEO Tim Cook states that the iPhone 12 was the most successful model in the company’s second fiscal quarter in 2021. He didn’t bring up the iPhone 12 mini.
Since its release in late 2020, the regular iPhone 12 has been in high demand. While Apple does not disclose specific revenue figures, it did provide some insight into how consumer demand was spread across each model during the company’s second-quarter earnings call on Wednesday.
Quarterly revenue for iPhone was $47.9 billion, up 65.5% from the year-ago quarter. The system made a major contribution to Apple’s record-breaking profits.
As predicted, Apple CEO Tim Cook said that the iPhone 12 was the most popular approach. However, demand for the iPhone 12 Pro and iPhone 12 Pro Max has remained high, indicating that these models are selling well.
According to analyst estimates, the “Pro” model iPhone will sell well, especially in the first quarter of 2021. Some analysts claim that the iPhone 12 will experience a super-cycle of demand close to the iPhone 6, Apple’s first smartphone with jumbo-sized displays.
During the call, Tim Cook forgot to mention the iPhone 12 mini. According to analysts, the iPhone 12 mini is by far the least common model, and some reports say it will be phased out of the lineup.
During its “Spring Loaded” event in April, Apple introduced a purple iPhone 12 and a purple iPhone 12 mini. The new color will help to drive sales of the regular model while also providing a much-needed boost to the iPhone 12 mini.
Apple’s Mac revenue increased by 70% in the second quarter of 2021
According to Apple’s new earnings report for the second fiscal quarter of 2021, as people continue to work and study from home, Macs and iPads are selling in record numbers (first calendar quarter).
Apple’s Mac category earned $9.1 billion, up from $5.4 billion in the previous quarter. In terms of iPads, Apple saw sales of $7.8 billion, up from $4.4 billion in the previous quarter. The iPad had its best March quarter revenue in nearly a decade, and the last three quarters have seen the highest Mac revenues ever.
According to Apple CFO Luca Maestri, “more than half” of Mac and iPad sales during the quarter came from consumers who were new to the devices and had never owned one before.
The second fiscal quarter of 2021 includes sales of new Mac and iPad gadgets, including the amazing new M1 Mac machines such as the 13-inch MacBook Pro, MacBook Air, and Mac mini.
Following the release of the new M1 iPad Pro and iMac models, iPad and Mac sales could increase even further in the coming quarter.
iPad Revenue Up Almost 79% in Q2 2021
Apple’s iPad revenue increased by 79 percent in the second quarter, setting a new milestone. Apple launched new low-cost iPads at the end of 2020, which fueled development in the second quarter of 2021. Tablet sales have increased in most markets as a result of the pandemic and work-from-home initiatives.
The iPad ascended to $7.8 billion in the third quarter, up from $4.4 billion the previous year. This 78.7 percent increase occurred before Apple updated the iPad Pro with an M1 processor, which could further accelerate development.
According to CFO Luca Maestri, the iPad has grown in every geographic segment, with sales records in Japan. Customer satisfaction with the iPad is at 94 percent, with new users accounting for half of all new purchases.
The “Spring Loaded” event introduced new powerful iPad Pros that will be available in the third quarter. Because of the ongoing buzz surrounding the move to Apple Silicon, expect each segment to expand even more.
Apple’s Wearables, Home & Accessories set a quarterly revenue record of $7.8 billion in Q2 2021
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Apple’s Wearables, Home, and Accessories segment acquired a record $7.8 billion in sales in the second fiscal quarter of 2021 (first calendar quarter), up from $6.3 billion the previous year.
Wearables, Home, and Accessories sales increased by a combined 25%. Apple CEO Tim Cook stated that wearables sales were up due to the success of the Apple Watch Series 6 and Apple Watch SE.
The Apple Watch continues to be popular with those who are new to the device; during the quarter, 75% of people who purchased an Apple Watch had never owned one before.
Apple expects the latest second-generation Apple TV 4K and AirTag to boost growth in Wearables, Home, and Accessories in the future. According to Apple CFO Luca Maestri, the company is “excited about the future of this category.”
Apple’s services revenue reaches an all-time high of $16.9 billion, In Q2 2021
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During the second fiscal quarter of 2021, Apple’s services segment, which includes the App Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple News+, Apple Fitness, and more, saw record development (first calendar quarter).
According to Apple’s earnings report, the services segment generated $16.9 billion in sales, up 27 percent from $13.4 billion in the previous quarter. According to Apple, new service records have been set in each geographical section.
Apple’s App Store, cloud storage, Apple Music, payments services, and other services all saw all-time highs in sales. Apple TV+, Apple Arcade, Apple Fitness+, Apple News +, Apple Card, and Apple One are all contributing to overall growth by “continuing to scale through users.”
During the quarter, Apple added 40 million paid subscriptions, bringing the total number of paid subscriptions across all services to 660 million, up 145 million from the previous quarter.
During the call, Apple CEO Tim Cook highlighted two of the company’s most recent service announcements: Apple Card Family and podcast subscriptions, all of which will be available soon.
