Apple tops $100 billion in revenue for the first time as iPhone, iPad sales surge

Get ready for Apple’s first $100 billion quarter in history

Apple Inc. posted its highest quarterly revenue total yet as the new iPhone 12 powered the company to its first $100-billion quarter in sales.

The smartphone giant generated revenue of $111.4 billion in its fiscal first quarter, up from $91.82 billion a year earlier and far ahead of the FactSet consensus forecast, which called for $103.27 billion.

Shares of Apple

were off 0.7% in after-hours trading Wednesday following the report.

Though Apple’s newest line of iPhones was only available for part of the holiday quarter, the company still grew smartphone sales, recording $65.60 billion in sales for the category compared with $55.96 billion a year earlier. Analysts were modeling $59.53 billion in iPhone sales.

Overall, Apple reported net income of $28.76 billion, or 1.68 a share, up from $22.24 billion, or $1.25 a share, in the year-prior period. Analysts expected $1.42 a share in earnings.

Apple continued to benefit from strong demand for products that could help in remote work and schooling settings. The company saw iPad revenue climb to $8.44 billion from $5.98 billion as Mac revenue increased to $8.68 billion from $7.16 billion. Analysts had been projecting $7.38 billion in iPhone sales and $8.68 billion in Mac sales.

The services business grew as well, reaching $15.76 billion in the December quarter, up from $12.72 billion. Sales from Apple’s wearables, home, and accessories category climbed to $12.97 billion from $10.01 billion. The FactSet consensus called for $15.17 billon in services revenue and $11.49 billion for the wearables category.

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Apple didn’t offer financial guidance in its earnings release, in line with past patterns during the pandemic. Analysts tracked by FactSet are modeling $74.05 billion in March-quarter sales and 91 cents in earnings per share for the period.

Shares of Apple have gained 7.6% in the week leading up to this earnings report, which would be its largest one-week gain prior to earnings since at least 2011, according to Dow Jones Market Data.

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Apple shares typically rise in the week and month leading up to earnings, but they’ve historically fallen in the week and month following a report. Over the past 10 years, Apple shares have dropped 1.9% on average in the week after an earnings report and fallen 2.5% in the month after a report, per Dow Jones Market Data.

Shares have gained 84% over the past year as the Dow Jones Industrial Average

has risen about 6%.

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