Apple Focusing On Services Amid All Round Growth

Earlier last week, Apple (AAPL) announced its second quarter results that surpassed market expectations. Despite the pandemic, the company continues to see strong growth across its products and services line. It reported double-digit growth across all of its revenue categories in the quarter.

Apple’s Financials

Apple’s second revenues grew 54% over the year to $89.6 billion, significantly ahead of the market’s forecast of $77.3 billion. EPS grew 35% over the quarter to $1.40, surpassing the Street’s forecast of $0.99.

By segment, iPhone revenues grew 65.5% to $47.94 billion, Mac sales grew 70.1% to $9.1 billion, and iPad sales grew 78.9% to $7.8 billion. Revenues from Wearables grew 24.7% to $7.8 billion. The services segment revenues grew 26.7% to $16.9 billion.

Apple did not provide any forecast for the current quarter. The market estimates revenues of $72.65 billion for the quarter with an EPS of $0.97 and revenues of $350.55 billion with an EPS of $4.98 for the year.

Apple’s Product Upgrades

Apple continued to upgrade its services offerings. Recently, it announced the Apple Card family, which reinvents how users can share credit cards and build credit together. The service will be available in the US in May and will allow up to five people to co-own an Apple Card and share and merge their credit lines while building credit together equally.

Apple Card Family will enable parents to share the Apple Card with their children, while allowing them to manage spending by adding spending limits and controls to drive safe financial habits. The service will make it easier to track spending through the iPhone with a single monthly bill.

Earlier this month, it announced the launch of Apple Podcast subscriptions. The service will be available in over 170 countries and will allow users to discover premium content from creators and storytellers, independent voices and studios such as TV, Pushkin Industries, and leading media and entertainment brands, including NPR, and many more.

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Disclosure: I am an investor in this company.

 All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses ...

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