Apple finished 2020 with a bang as it posted another massive quarter, pulling in $111.4 billion in revenue. Its revenue rose over 21% as it logged its most profitable quarter ever despite numerous restrictions created by the pandemic.
It’s the first time Apple crossed the symbolic $100 billion mark in a single quarter. The company reported $15.7 billion in services and $95billion in sales from products. To put things in perspective, Apple in the same quarter of 2019, posted revenue of $91.8 billion.
The holiday quarter is always essential for tech giants like Apple and accounts for about 30 percent of its annual product sales. The stakes were even higher this time, as the COVID- 19 outbreak delayed the production of the iPhone 12.
The pandemic even forced Apple to delay the launch date of its new product to October instead of its traditional September release. This meant that different models of the new iPhone didn’t start shipping to customers until November, cutting down the number of weeks Apple usually has to capture sales ahead of Christmas.
However, the revenue number posted by Apple beat analysts’ expectations of $103.2 billion. Many analysts had expected Apple to do well thanks to the holiday season and the debut of the iPhone 12 in October. The latest model featured a new look with 5G capabilities as well as different models of various sizes and prices.
Tim Cook noted that the results would’ve been better if not for the pandemic. The outbreak had forced Apple to close down many of its stores around the world.
He also pointed out the strong growth across all Apple products - not just iPhone sales to be the reason for such massive earnings. As the pandemic increased demands for home computing services and products, Apple boasted double-digit gains in all of its product categories.
To breakdown earnings across product categories, booming iPhone sales were responsible for $65.59 billion in revenue while Mac and iPad sales delivered $8.68 billion and $8.48 billion, respectively. Its burgeoning services division like Apple+ TV and Apple music jumped 24% to $15.8 billion.
“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide,” Cook said in a statement. “We are also focused on how we can help the communities we’re a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.”
Apple’s revenue increased across all geographic areas, especially in China where its year-over-year revenue jumped by more than 56%.
To make up for the pandemic Wedbush securities analyst Dan Ives says that the new iPhone will launch a sales “super cycle”, in which consumers who have older iPhones will be able to upgrade their phones and get access to 5G connectivity with iPhone 12.
Apple also introduced another hardware product in 2020, the AirPods Max which received mostly positive reviews.
Even though there were fears of Apple’s bottom line taking an enormous hit due to the COVID lockdown, its financial performance over the last nine months has shown that Apple’s business can even withstand a global pandemic.