Robust iPhone 12 sales help Apple deliver a record-setting quarter

The company hit new milestones across numerous segments.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple Inc (NASDAQ: AAPL) reported the results for its fiscal first quarter (ended 26 December 2020). To say it was a blowout wouldn't be hyperbole. Revenue grew 21% year over year to a record $111 billion. That growth resulted in earnings per share (EPS) of $1.68, an increase of 35% that also set a new high-water mark. 

Analysts' consensus estimates were for revenue of $103 billion and EPS of $1.42. 

Record performances by several segments helped fuel the results. Apple reported that the iPhone, wearables, and services segments each delivered record sales.

iPhone sales of nearly $66 billion led to the blockbuster results. That figure was $5 billion more than expected and constituted 59% of Apple's total revenue. Services growth also rose 24% year over year to $15.76 billion, while handily topping expectations of $14.89 billion. The company also generated record cash flow of $38.8 billion.

While Apple generated robust growth across its geographic segments, it was sales in Greater China that stole the show. Revenue in the region soared 57% year over year as Chinese consumers snapped up the new iPhone 12 models, the first to feature next-generation 5G capability.

"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 CFO.

On the heels of a bullish call earlier this week, analyst Daniel Ives of Wedbush Securities called the results a "jaw-dropper" and a "kick-start to the 5G super-cycle," exceeding even the most bullish expectations. He went on to say that "[Apple CEO Tim] Cook & Co. have the stage set for a renaissance of growth ... which looks like it should eclipse the previous iPhone record set in [fiscal year 2015]." 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Danny Vena owns shares of Apple. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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