Apple Soars After Blockbuster Quarter: Sales, EPS Smash Expectations, Buyback Boosted To $90BN

As Bloomberg notes, this is a sign of significant demand for the iPhone after years of concerns that Apple buyers weren’t keen to upgrade their devices. The iPad has also seen a marked rise in demand that coincided with the Covid-19 pandemic, which left people stuck at home, with a need to educate and entertain their children and themselves.

The geographic breakdown was striking, and shows the base effect in its full glory, with all regions posting double-digit growth, and Rest of Asia close to triple digits.

And in dollar terms:

The closely watched Services soared to $16.901BN, beating expectations of $15.65BN...

.... and up 26.6% from the $13.3BN a year ago.

Unlike the brisk growth in Services, Apple’s Wearables, Home, and Accessories segment had more muted growth relative to other categories, with total revenue rising 25% to $7.8BN from $6.3BN. As Bloomberg further adds, the HomePod, Apple’s competitor to the Amazon Echo and Google Home devices, has struggled to stand out in the marketplace.

Unlike many of its peers, Apple said that it saw no material issue with supply chain constraints, while CEO Tim Cook said that “this quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us. Apple is in a period of sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world.”

Commenting on the quarter, Apple’s CFO Luca Maestri said that “these results allowed us to generate operating cash flow of $24 billion and return nearly $23 billion to shareholders during the quarter. We are confident in our future and continue to make significant investments to support our long-term plans and enrich our customers’ lives."

"We are proud of our March quarter performance, 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" he added.

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