US-based iPhone maker Apple reported that its profits surged in the final three months of 2020 on growing sales of iPhones and services, lifting revenues to an all-time record.
Profit in the period that ended on December 26 2020 rose 29 percent from 2019 to $28.7 billion, while revenues grew 21 percent to $111.4 billion, with international sales accounting for nearly two-thirds of sales.
Sales topped the $100 billion mark for the first time as Apple won over pandemic-hit consumers with new gadgets and services. “We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season,” chief executive Tim Cook said.
Apple said iPhone sales accounted for nearly $66 billion, leading all other products and growing some 18 percent. The tech giant also saw strong growth in wearables, including its Apple Watch, delivering $12.9 billion in sales for that category in the company’s first quarter. Services accounted for $15.7 billion as Apple grew sales of music, digital content, cloud computing and subscriptions.
Apple executives said they expect sales growth from AirPods and other wearables to come down in the second quarter of 2021. They also warned that Services sales in the period will face tougher comparisons with a year earlier.
Beyond the iPhone, Apple reported iPad sales of $8.44 billion, topping projections of $7.58 billion. The company launched a redesigned iPad Air and a faster entry-level model during the quarter. Mac sales were $8.68 billion, missing estimates of $8.86 billion. That comes despite Apple launching a new MacBook Pro, Mac mini and MacBook Air during the quarter.
The Apple Watch Series 6, Apple Watch, the HomePod mini speaker and AirPods Max headphones, the four major new products launched recently, gave Apple its strongest quarter to date with revenue of $12.97 billion. Analysts had estimated it to be $11.84 billion.
Apple saw significant growth in all major geographies, including in Greater China where sales jumped to $21.3 billion from $13.6 billion a year ago. The company reported $46.3 billion in revenue in the Americas region, up about $5 billion from the year-ago period.