Apple Inc (NASDAQ: AAPL) stock fell 0.77% on Jan 28th, 2021 pre-market session (Source: Google finance) despite decent performance by the firm.
Apple shipped its iPhone 12 lineup several weeks later than usual, but an expanded number of models and new look tapped pent up demand for upgrades, especially in China. The company also posted strong sales of its Mac laptops and iPads in the quarter, driven by consumers working, learning and playing from home during the pandemic. Sales of iPhones were $65.60 billion and beat a record set three years ago. China proved a strong market for iPhone, with overall sales there rising 57% to $21.31 billion. Mac sales hit expectations at $8.68 billion. Sales of iPads, services and wearable topped Wall Street targets. iPad revenue was $8.44 billion and the services business, which includes its new Apple One bundle of television, music and cloud storage services, had $15.76 billion in revenue.
AAPL in the first quarter of FY 21 has reported the adjusted earnings per share of $1.68, beating the analysts’ estimates for the adjusted earnings per share of $1.37. The company had reported the adjusted revenue growth of 21 percent to $111.44 billion in the first quarter of FY 21. International sales accounted for 64 percent of the quarter’s revenue. The company’s services revenue of $15.8 billion marked a 24.0% increase YOY and was ahead of the $14.9 billion analysts predicted. The services segment also includes sales from Apple’s App Store, whose billing practices have become a flashpoint of conflict with “Fortnite” creator Epic Games and whose privacy rules have ticked off a public spat with Facebook Inc.
Apple’s wearables and accessories segment, which includes the Apple Watch and AirPods product lines, reported $12.97 billion in revenue. Apple in December released the AirPods Max, which is a $550 set of over-ear wireless headphones, with shipment dates stretching months into the future within hours of the product’s launch. Cook said short supplies of the AirPods Max could continue into the company’s current fiscal second quarter.
Additionally, the company has declared a cash dividend of $0.205 per share of the Company’s common stock. The dividend is payable on February 11, 2021 to shareholders of record as of the close of business on February 8, 2021.
Meanwhile, the analysts expect Apple’s services revenue to increase to $14.9 billion in Q1 FY 2021, its highest level in at least four years. For Q1 FY 2021, analysts estimate revenue will rise a healthy 17.3% YOY, and increase 15.6% for all of FY 2021.