Apple (Nasdaq: AAPL) announced its first quarter results that put all iPhone doubters to rest. The holiday quarter saw iPhones sales surge to record high levels. With the continuing 5G revolution within the mobile segment, analysts believe iPhone sales are likely to keep growing. But it is not only the iPhones that are driving growth, Apple continued to witness growing demand for its services and wearables also.

Apple’s Financials

Apple’s quarterly revenues grew 9% over the year to $91.8 billion, ahead of the market’s forecast of $88.4 billion. EPS grew 19% over the year to $4.99, surpassing the Street’s forecast of $4.55.

By segment, iPhone revenues grew 8% over the year to $55.96 billion, ending the declining trend witnessed by the segment for the last few quarters. The increase in sales was attributed to the release of three new phones during the quarter – iPhone 11, iPhone 11 Max, and iPhone 11 Pro. Mac sales, however, slipped 4% to $7.16 billion, and iPad sales fell 11% to $5.98 billion. Services revenues grew 17% over the year to $12.72 billion. Its wearable devices including the Watch and AirPods crossed the $10 billion revenue threshold, ahead of the market’s forecast of $9.5 billion.

Apple’s installed base that measures the total number of product units that are in active use grew to 1.5 billion and subscribers to its various services grew 33% to 480 million.

For the current quarter, Apple forecast revenues of $63-$67 billion, ahead of the market’s forecast of $62.4 billion.

Apple’s Product and Service Upgrades

The quarter’s performance was driven by several new product releases and service upgrades. iPhone 11 was its top-selling model for every week during the December quarter. In fact, the new iPhone 11 variants were its most popular models during the quarter. It reported double-digit growth in many developed markets, including the US, the UK, France, and Singapore and in a few emerging markets including the markets of Brazil, mainland China, India, Thailand, and Turkey. The new iPhones come with significantly better battery life, and an upgraded camera with the ability to take photos in the Night mode.

Besides products, Apple continued to see strong performance from its services as well. It recently released a new game subscription service that now has a catalog of more than 100 new and exclusive games. These games are all playable across Apple devices and Apple continues to build on its library each month.

Within streaming, while Apple TV+ remains a small contender to the likes of Netflix and Disney+, it is still growing rapidly. It continues to build content such as Little America that was recently released to widespread critical acclaim. Apple is also adding content and viewership for its News service. Apple’s personalized News service now has more than 100 million monthly active users in the US, UK, Australia, and Canada. It has been adding access to several global publications as part of its News+ offering to let readers access the news on their devices.

Within the wearables, Apple is integrating it with several of its other services. For instance, starting this spring, iPhone and Apple Watch customers will be able to pay for their train and bus rides by simply tapping their devices. The service is expected to be released in more cities this year including the Chinese cities of Shenzhen and Guangzhou.

The market is thrilled with Apple’s performance. Its stock is trading at $317.69 with a market capitalization of $1.39 trillion. It had touched a record high of $323.33 in the after hours trading session. It hit its 52-week low of $154.11 a year ago.