Apple’s net profit a lot more than doubled in the business's fiscal 2021 second quarter that ended on March 27, as earnings across all types of products reported double-digit growth.
The Cupertino company’s net profit surged 110 % yearly to more than $23.6 billion.
Revenue surged 54 per cent on an annual basis to $89.6bn in the quarter. This is the record for March quarter sales in the annals for the iPhone maker.
The earnings were driven by the robust sale of 5G-enabled iPhone 12 series phones, launched in October, and more sales of iPads and Macs as persons continued to work and learn from home to stem the spread of coronavirus.
“This quarter reflects both enduring ways our products have helped our users meet this moment in their own lives, in addition to the optimism consumers seem to be to experience better days ahead for all those,” said Tim Cook, the company’s leader.
“Apple is in a period of sweeping innovation across our product line-up, and we are keeping concentrate on how we might help our teams and the communities where we work emerge from this pandemic into an improved world."
The results topped analysts' estimates and increased the stock price of the business by 2.4 per cent to $136.7 a share in after-hours trading.
The sales of iPhones constitute a lot more than 53.5 % of the revenues. It surged a lot more than 65 % to $47.9bn in the quarter from the year earlier period.
The company’s total earnings from services grew almost 26.9 % annually to $16.9bn, while earnings from wearables, home and accessories products increased almost 24.6 % yearly to a lot more than $7.8bn.
Revenue from iPads and computers surged 73.9 % to $16.9bn.
“March quarter performance … included earnings records in each of our geographic segments and strong double-digit growth in your product categories … driving our installed base of active devices to an all-time high,” said Luca Maestri, Apple’s chief financial officer.
Apple generated an operating cash flow of $24bn and returned almost $23bn to shareholders through the quarter, Mr Maestri said.
“We are confident in our future and continue steadily to make significant investments to support our long-term plans and enrich our customers’ lives,” he said.
Apple’s sales beyond your US market accounted for practically 67 per cent of the company's total second-quarter revenue.
Regardless of the US-China trade issues, Apple were able to gain significant new ground in the Greater China market of mainland China, Hong Kong and Taiwan, which added $17.7bn to its revenues within an total annual increase of almost 87.4 %.
Apple produced nearly 199 million handsets this past year, grabbing market share of 16 %, according to Taipei market intelligence company TrendForce.
It plans to produce up to 96 million iPhones in the first half of 2021, a 30 % year-on-year increase, after demand for its first 5G handsets surged amid the Covid-19 pandemic.
Apple didn't issue official guidance about the near future revenues and profits. Citing uncertainty in business, it stopped offering guidance because the start of the Covid-19 pandemic.
Mr Maestri told analysts that the business expected June quarter earnings to improve by double digits on a yearly basis, however the company is facing some supply shortages because of the global chip shortage.
Last year, it delayed the launch of iPhone 12 series by at least per month as a result of supply chain disruptions.
Apple increased the money dividend by 7 % to $0.22 a share and authorised a rise of $90bn in share buybacks.
It is considerably up from the last year’s spending of $50bn.