Soaring Sales During Pandemic Propels Apple To Report Record Quarter Profits Ever

The last quarter for 2020 was the most profitable quarter ever from Apple as the company benefitted from a surge in demand and sale of its high end iPhones, tablets and laptops during the pandemic with people being forced to stay back home.

The sale revenues of the company for the three months ending on 26 December 2020 came in at $111.4bn resulting in a profit of $28.7bn, which was 29 per cent higher compared to the same period a year ago, the company said.

About 30 per cent of the total sales of the company happened in the holiday period which makes it a crucial time for company and strong sales of its latest iPhone also boosted the record quarter for 2020 for the iPhone maker.

The results of the company were better than expected by the market and the sales of the company’s latest iPhones primarily drove the record results. For the quarter, the revenues from sale of iPhones came in at $65.6bn which was 17 per cent higher than the same quarter a year ago.

“We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season,” Apple chief executive Tim Cook said in a statement.

The latest completed quarter was the first quarter since the company had launched a host of ne models including the iPhone 12 mini, the iPhone 12, the iPhone 12 Pro and the iPhone 12 Pro Max.

The performance of the company however was strong across all its product segments with a 24 per cent year on year surge in the sale revenues from its services division, which includes its App Store and licensing deals, which came in at $15.76bn. during the quarter, there was also an increase of 29 per cent year on year in the revenues from Apple’s ‘other products’ which includes the Apple Watch and home products, with revenues coming in at $12.97bn. Revenues from sale of Mac were up 21 per cent at $8.68bn in the latest completed quarter.

The company could have performed even better but for the Covid-19 pandemic which forced the company to temporarily close many of its stroes all around the world, Cook said.

“Taking the stores out of the equation, particularly for iPhones and wearables, there’s a drag on sales,” Cook said in a television interview.

Prior to Apple reporting record results, another tech giant Microsoft too posted similarly record breaking results for its latest completed quarter with revenues of $40bn. Better than expected results were also earlier reported by the social media firm Facebook with revenues of $28bn for the latest completed quarter.

“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s chief financial officer.

The shares of Apple have risen by 84 per cent over the past 12 months.

(Adapted from DailyMail,com)

Categories: Economy & Finance, Strategy, Sustainability

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