More consumers are buying Apple devices than ever before, especially the iPhone 12, despite the ongoing global pandemic. The company on Wednesday reported revenues of $89.6 billion and a profit of $23.6 billion for the last three months ending March 27.
Apple has said its business continues to grow as consumers bought computers and tablets for work from home in the past few months. In fact, sales of iPads rose 77 per cent during the January-March period, compared to a year ago, amounting to $7.8 billion. Mac computer sales, meanwhile, increased 69 per cent to $9.1 billion. In late last year, Apple launched a new range of Macs powered by its own M1 silicon, instead of Intel processors.
While sales of iPad and Mac are strong, Apple is also warning of supply shortages. Speaking to analysts during Apple’s earnings call, CEO Tim Cook and CFO Luca Maestri explained that the current chipset supply shortages will impact iPad and Mac lineups in Q3.
Sales of iPhones continue to grow, surprisingly, given most consumers shop for new iPhones during the crucial holiday shopping season. The iPhone 12 range has been well received, something that reflects in the last quarter numbers. Apple sold 66 per cent more iPhones, generating sales of $48 billion, making it the company’s biggest March quarter. Apple first introduced the iPhone 12 series last year, featuring a new design language and 5G support. The launch of the iPhone 12 has kicked off an upgrade cycle that some experts had predicted before.
Wearables, accessories and home rose 24 per cent to $7.8 billion, as more consumers bought the Apple Watch, which continues to be the best smartwatch in the world. Revenue from services, including Apple Music and Apple TV+, grew 27 per cent to $16.9 billion.
“This quarter reflects both the enduring ways our products have helped our users meet this moment in their lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” Apple CEO Tim Cook said in a statement.
Every geography where Apple currently operates has grown in the last quarter, including America and Europe. In greater China, Apple’s most important market from the strategy point of view, which includes Hong Kong, Taiwan and mainland China, the company’s revenue increased over 87 per cent to $17.73 billion.
Although Apple did not reveal how the company performed in India in the last quarter, it appears that sales of iPhones are stronger than expected in the world’s second-largest smartphone market. Market research agency Counterpoint recently revealed that Apple shipped over 1 million iPhones in the country. Strong demand for the iPhone 11 and iPhone SE was the reason why Apple did exceptionally well in India in the past quarter. Emerging markets, especially India, have done significantly better, according to CFO Luca Maestri.
The Cupertino, California-based Apple unveiled several new products during its “Spring loaded” event last week, including a redesigned iMacs, a brand new iPad Pro with a mini-LED display, a new AirTag accessory, a podcast subscription service and a purple iPhone 12. It also rolled out the iOS 14.5 software update for the iPhone.