Apple (NASDAQ: AAPL) reported the results for the first fiscal quarter (ended December 26, 2020). To say it was a blow would not be an exaggeration. Revenue grew 21% year on year, to a record $ 111 billion. This growth resulted in earnings per share (EPS) of $ 1.68, an increase of 35% that also set a new benchmark.
Analysts’ consensus estimates were for revenue of $ 103 billion and EPS of $ 1.42.
Image source: Apple.
The record performance of several segments helped to feed the results. Apple reported that the iPhone, wearables and services segments had record sales.
IPhone sales of nearly $ 66 billion led to blockbuster results. That number was $ 5 billion more than expected and constituted 59% of Apple’s total revenue. Service growth also grew 24% year-over-year, to $ 15.76 billion, while easily exceeding expectations of $ 14.89 billion. The company also generated record cash flow of $ 38.8 billion.
Although Apple has generated robust growth in its geographic segments, it was sales in Greater China that stole the show. Revenue in the region increased 57% year on year, with Chinese consumers buying the new iPhone 12 models, the first to feature next generation 5G capacity.
“Our business performance in the December quarter was fueled by double-digit growth in each product category, which generated revenue records in each of our geographic segments and a historic record for our installed base of active devices,” said Luca Maestri, Apple CFO.
In the wake of a bullish call earlier this week, analyst Daniel Ives of Wedbush Securities classified the results as “jaw-dropping” and a “kick-start for the 5G super cycle”, exceeding even the most optimistic expectations. He continued to say that “[Apple CEO Tim] Cook & Co. set the stage for a revival of growth … which looks set to eclipse the previous iPhone record set in [fiscal year 2015]. ”