Apple has obliterated estimates, posting an all-time record revenue for its Q1 earnings report.
Analysts were expecting the company to post $103.3 billion in revenue, far less than the whopping $111.4 billion Apple reported. That represents a 21% increase, year-over-year, coming in at $1.68 per share, an increase of 35%.
The company says international sales accounted for 64% of the company’s revenue, with China sales contributing a big portion. Sales in China increased 57%, coming in at $21.3 billion.
iPhone revenue reached an all-time high of $65.5 billion, rising 17%, driven by demand for the 5G iPhone 12. Apple’s diversification strategy is paying off as well, with the company’s services revenue hitting $15.8 billion, an increase of 24.2%. The company says it now has 620 million subscribers to its services, beating its goal of having 600 million at the end of 2020.
“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide,” said Tim Cook, Apple’s CEO. “We’re gratified by the enthusiastic customer response to the unmatched 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 a 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.”
“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These results helped us generate record operating cash flow of $38.8 billion. We also returned over $30 billion to shareholders during the quarter as we maintain our target of reaching a net cash neutral position over time.”