Apple posts record $89.6B in Q2 revenue on back of across-the-board growth

Posted:
in AAPL Investors edited April 28
Apple earned $89.6 billion in revenue for the second fiscal quarter of 2021, a huge Wall Street beat attributed in large part to strong growth in iPhone, wearables and services.

iPhone 12


Released ahead of its customary conference call with analysts, Apple has confirmed revenue of $89.6 billion for the quarter ending March 2021. This represents a year-on-year growth of 54% from Q2 2020, when Apple reported $58.3 billion at the start of the COVID-19 pandemic. Net profit rose a gargantuan 110% to hit $23.6 billion.

"This quarter for Apple wouldn't have been possible without the tireless and innovative work of every Apple team member worldwide," said Apple CEO Tim Cook. "We're gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. 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."

The gross margin for the quarter reached 42.5% and is up from the year-ago quarter, which was 38.4%. Operating expenses for the period were $10.6 billion, above Q2 2020's $9.5 billion. Diluted earnings per share is reported at $1.40.

Revenue Graph


Ahead of the results release, the Wall Street consensus reckoned Apple would report revenue of $77.4 billion, with an earnings per share of $0.99.

While Q2 2020 was rocked by the initial effects of the pandemic, Q2 2021 follows after a year when Apple worked to mitigate its effects.

The record-setting Q1 revenue of $111.4 billion was aided by considerable growth in iPhone sales, due to the release of the iPhone 12 range. Q2 benefits from Q1's lead, with iPhone revenues hitting $47.9, up from the $28.96 billion seen in Q2 2020.

Revenue from iPad is $7.8, up from $4.4 billion one year ago, Mac revenue of $9.1 billion is up from Q2 2020's $5.4 billion, and Wearables, Home, and Accessories is up to $7.8 from $6.3 billion this time last year.

This represents the first full quarter of sales for the iPhone 12 range, as well as the Apple Watch Series 6, the Apple Watch SE, the 2020 iPad, the iPad Air, the HomePod mini, the initial wave of Apple Silicon Macs, and the AirPods Max.

The ever-reliable growth of Apple's Services arm continued, rising to $16.9 billion from $13.4 billion in the same period of 2020.

Unit Revenue Graph


It is unknown whether Apple's results meet the company's own forecast, as it has refused to issue quarterly forecasts since the start of the pandemic. However, for the Q1 results, CFO Luca Maestri said he expected Apple's revenue growth to accelerate year-on-year in the second quarter.

Naturally, Apple hasn't provided a forecast for Q3 2021.
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Comments

  • Reply 1 of 28
    badmonkbadmonk Posts: 968member
    $1.4 per share earnings, the street was looking for under a $1...what a beast.
    bageljoeywatto_cobra
  • Reply 2 of 28
    MacProMacPro Posts: 19,254member
    OMG! Well done Tim and the rest of Apple.
    StrangeDayswatto_cobra
  • Reply 3 of 28
    BeatsBeats Posts: 2,111member
    Apple

    Peak iPhone since 2014
    lkruppRayz2016StrangeDaysFileMakerFellerwatto_cobra
  • Reply 4 of 28
    seankillseankill Posts: 539member
    All those stimulus checks going to electronics. 
    melgrosslkrupp
  • Reply 5 of 28
    melgrossmelgross Posts: 32,959member
    Being realistic, Apple could reach $340 billion this year if the next two quarters hit $70 billion each.

    but with all the euphoria around, I’d like to remind people about what happened in 2016, 2017 and 2018. 2016 also had a major factor for about a 50% sales increase in iPhones because of the new large sizes. I tried to tell people that sales could be lower next year, and possibly even for the year after that. The reason was that people bought the big phones in 2016 who would otherwise have bought a phone the year after, and even some, the year after. Then, those people wouldn’t buy a phone in those years. That turned out to be true before sales began to rise again, despite pundits stating that Apple had seen “peak” iPhone.

    this year, we have the pandemic. Many companies are seeing large sales lifts if their products fall into the area where people who are staying home would want and need. Computing and telecommunications were two of those areas. Food delivery services were another. Apple’s sales rise of 54% is stupendous, but I believe that some of that would have been next year, and some from the year after that, just as in 2016. So don’t be surprised if the might be a sales fall next year if the pandemic is mostly gone, and people are getting back to normal. Then, as a result, don’t be surprised if those wonderful pundits start talking about “peak” Apple, with a drop in share price.
    muthuk_vanalingamequality72521FileMakerFellerwatto_cobra
  • Reply 6 of 28
    ppietrappietra Posts: 247member
    seankill said:
    All those stimulus checks going to electronics. 
    well, it doesn’t seem like it. The Americas was the region with least growth, significantly bellow the average. The rest of the world was responsible for more than 70% of the revenue growth
    edited April 28 bageljoeyfastasleepmuthuk_vanalingamFileMakerFellerwatto_cobra
  • Reply 7 of 28
    cg27cg27 Posts: 108member
    melgross said:
    Being realistic, Apple could reach $340 billion this year if the next two quarters hit $70 billion each.

    but with all the euphoria around, I’d like to remind people about what happened in 2016, 2017 and 2018. 2016 also had a major factor for about a 50% sales increase in iPhones because of the new large sizes. I tried to tell people that sales could be lower next year, and possibly even for the year after that. The reason was that people bought the big phones in 2016 who would otherwise have bought a phone the year after, and even some, the year after. Then, those people wouldn’t buy a phone in those years. That turned out to be true before sales began to rise again, despite pundits stating that Apple had seen “peak” iPhone.

    this year, we have the pandemic. Many companies are seeing large sales lifts if their products fall into the area where people who are staying home would want and need. Computing and telecommunications were two of those areas. Food delivery services were another. Apple’s sales rise of 54% is stupendous, but I believe that some of that would have been next year, and some from the year after that, just as in 2016. So don’t be surprised if the might be a sales fall next year if the pandemic is mostly gone, and people are getting back to normal. Then, as a result, don’t be surprised if those wonderful pundits start talking about “peak” Apple, with a drop in share price.
    Indeed those years were painful in terms of the stock price relative to other big tech, but hopefully growing India iPhone sales dramatically will help with any softening elsewhere.
    watto_cobra
  • Reply 8 of 28
    radarthekatradarthekat Posts: 3,336moderator
    melgross said:
    Being realistic, Apple could reach $340 billion this year if the next two quarters hit $70 billion each.

    but with all the euphoria around, I’d like to remind people about what happened in 2016, 2017 and 2018. 2016 also had a major factor for about a 50% sales increase in iPhones because of the new large sizes. I tried to tell people that sales could be lower next year, and possibly even for the year after that. The reason was that people bought the big phones in 2016 who would otherwise have bought a phone the year after, and even some, the year after. Then, those people wouldn’t buy a phone in those years. That turned out to be true before sales began to rise again, despite pundits stating that Apple had seen “peak” iPhone.

    this year, we have the pandemic. Many companies are seeing large sales lifts if their products fall into the area where people who are staying home would want and need. Computing and telecommunications were two of those areas. Food delivery services were another. Apple’s sales rise of 54% is stupendous, but I believe that some of that would have been next year, and some from the year after that, just as in 2016. So don’t be surprised if the might be a sales fall next year if the pandemic is mostly gone, and people are getting back to normal. Then, as a result, don’t be surprised if those wonderful pundits start talking about “peak” Apple, with a drop in share price.
    The negativity and doomsaying chatter surrounding Apple seems to have lessened in the past couple of years versus the old days of ‘Tim cook needs to go, Apple is doomed’ retorhic.  Maybe enough of the world has switched to Apple products and services such that the naysayers have been quieted.  Or maybe they’ll come roaring back.  

    But, in general, the spike in sales will be good for Apple, even if some analysts will see the subsequent drop as a sign of peak all-things-Apple.  And the reason it’s a positive is that it gets the clock at least started ticking on that huge number of products recently purchased, toward eventually themselves being replaced in years ahead, it puts a lot of cash into Apple’s hands to fund all their initiatives and it simultaneously deprives Apple’s competition of a lot of customers who are being brought into the sticky Apple ecosystem. 

    On top of all the above, this spike consumed yet another year of waiting on the next really big thing out of Apple, which may be their initiative in the transportation sector or may be in the medical/health maintenance sector.  Either way, it makes the waiting easier.  
    tmayBeatswatto_cobra
  • Reply 9 of 28
    MplsPMplsP Posts: 2,944member
    I guess AirPods Max must be selling well!

    Whatever the reason, it’s ultimately good for all of us. Healthy Apple means continued development of great products and services. 
    dewmeBeats
  • Reply 10 of 28
    tmaytmay Posts: 5,083member
    melgross said:
    Being realistic, Apple could reach $340 billion this year if the next two quarters hit $70 billion each.

    but with all the euphoria around, I’d like to remind people about what happened in 2016, 2017 and 2018. 2016 also had a major factor for about a 50% sales increase in iPhones because of the new large sizes. I tried to tell people that sales could be lower next year, and possibly even for the year after that. The reason was that people bought the big phones in 2016 who would otherwise have bought a phone the year after, and even some, the year after. Then, those people wouldn’t buy a phone in those years. That turned out to be true before sales began to rise again, despite pundits stating that Apple had seen “peak” iPhone.

    this year, we have the pandemic. Many companies are seeing large sales lifts if their products fall into the area where people who are staying home would want and need. Computing and telecommunications were two of those areas. Food delivery services were another. Apple’s sales rise of 54% is stupendous, but I believe that some of that would have been next year, and some from the year after that, just as in 2016. So don’t be surprised if the might be a sales fall next year if the pandemic is mostly gone, and people are getting back to normal. Then, as a result, don’t be surprised if those wonderful pundits start talking about “peak” Apple, with a drop in share price.
    Mel,

    It would be accurate to state that this year has been exceptional, but given that Apple has near to a billion iPhone users, with the replacement cycle having peaked at just under 4 years, I would argue that Apple should still expect to see a trend of iPhones unit sales growth in the future. I do agree that Apple stock will be volatile over the next two quarters, as economies begin to settle back to a new status quo. I'm not prescient, but I think that Apple will have a very good fall, even though I would not expect revenues to match FY2021 Q1. Probably a buying opportunity at that point.
    Beatswatto_cobra
  • Reply 11 of 28
    larryjwlarryjw Posts: 757member
    Apple's customer base is far less price conscious than most people. The pandemic caused major losses of life and income, housing and food security. Most Apple customers we not so effected. 

    This is the nature of an economy divided into Haves and Have Nots. 
    tmayBeats
  • Reply 12 of 28
    lkrupplkrupp Posts: 9,012member
    larryjw said:
    Apple's customer base is far less price conscious than most people. The pandemic caused major losses of life and income, housing and food security. Most Apple customers we not so effected. 

    This is the nature of an economy divided into Haves and Have Nots. 
    Enough of the socialist pablum, please. If you are so concerned about the have nots then stop buying Apple products and give the extra money you save to charity. By the way, did you give your stimulus check to the have nots?
    edited April 28 VaporStaindewmemike1equality72521
  • Reply 13 of 28
    zeus423zeus423 Posts: 96member
    Beleaguered...time to sell /s
    commentzillahammeroftruthramanpfaffFileMakerFellerBeatswatto_cobra
  • Reply 14 of 28
    I really y wish they would be a bit more aggressive on Mac pricing or specs: RAM & SSD. Most anyone with a Mac is more likely to be in the full eco-system and provide deeper penetration into mindshare/marketshare, thus driving more sales across the board. In the end they make the same profit or more, while penetrating more markets for all of their products. With the M1 I expected to see the same price/specs or a small decrease but instead it seems like it went up.
    watto_cobra
  • Reply 15 of 28
    zeus423 said:
    Beleaguered...time to sell /s
    Exactly, Apple is "doomed"!  :D
    Beatswatto_cobra
  • Reply 16 of 28
    StrangeDaysStrangeDays Posts: 11,157member
    lkrupp said:
    larryjw said:
    Apple's customer base is far less price conscious than most people. The pandemic caused major losses of life and income, housing and food security. Most Apple customers we not so effected. 

    This is the nature of an economy divided into Haves and Have Nots. 
    Enough of the socialist pablum, please. If you are so concerned about the have nots then stop buying Apple products and give the extra money you save to charity. By the way, did you give your stimulus check to the have nots?
    Even with your socialism fearmongering, please. I’m quite pleased with the vaccine rollout, which is socialized medicine. I also like the covid stimulus packages from both administrations, as well as public schools, parks, the space program, and clean drinking water. All socialism. Heavens!
    tmaylkruppcanukstormBeats
  • Reply 17 of 28
    ppietrappietra Posts: 247member
    melgross said:
    Being realistic, Apple could reach $340 billion this year if the next two quarters hit $70 billion each.

    but with all the euphoria around, I’d like to remind people about what happened in 2016, 2017 and 2018. 2016 also had a major factor for about a 50% sales increase in iPhones because of the new large sizes. I tried to tell people that sales could be lower next year, and possibly even for the year after that. The reason was that people bought the big phones in 2016 who would otherwise have bought a phone the year after, and even some, the year after. Then, those people wouldn’t buy a phone in those years. That turned out to be true before sales began to rise again, despite pundits stating that Apple had seen “peak” iPhone.

    this year, we have the pandemic. Many companies are seeing large sales lifts if their products fall into the area where people who are staying home would want and need. Computing and telecommunications were two of those areas. Food delivery services were another. Apple’s sales rise of 54% is stupendous, but I believe that some of that would have been next year, and some from the year after that, just as in 2016. So don’t be surprised if the might be a sales fall next year if the pandemic is mostly gone, and people are getting back to normal. Then, as a result, don’t be surprised if those wonderful pundits start talking about “peak” Apple, with a drop in share price.
    I agree! I can imagine that every electronics segment (PCs, tablets, smartphones) will see a significant drop in sales (year over year) in the last months of this year, not just Apple but the all market. The pandemic effect will dissipate, after a lot of people bought machines that they would not have bought under regular conditions. With most people returning to a normal daily life, we will not see a rush to buy new devices.
    The PCs will probably have a big crush in sales, considering how much schools and students spent buying computers for online classes. That much investment will not happen again, ever. Maybe Apple will be able to soften the decline with the new Macs, but Windows and ChromeOS PCs are going to see a very steep decline.
    watto_cobra
  • Reply 18 of 28
    mattinozmattinoz Posts: 1,517member
    Looking at that graph it seems funny here people say iPhone Mini doesn't sell well.
    Even at reported "poor" numbers it must bring in more cash than best selling Mac, IPad or Watch if not all 3 combined.
    Beatswatto_cobra
  • Reply 19 of 28
    crowleycrowley Posts: 7,639member
    lkrupp said:
    larryjw said:
    Apple's customer base is far less price conscious than most people. The pandemic caused major losses of life and income, housing and food security. Most Apple customers we not so effected. 

    This is the nature of an economy divided into Haves and Have Nots. 
    Enough of the socialist pablum, please. If you are so concerned about the have nots then stop buying Apple products and give the extra money you save to charity. By the way, did you give your stimulus check to the have nots?
    Cool it snowflake.
    tmayBeats
  • Reply 20 of 28
    thedbathedba Posts: 587member
    What surprises me from the revenues chart is that the wearables/home category has surpassed the Mac. 
    We already knew that services was a fast growing category, but wearables/home?   
    I wonder what the breakdown would be within that category. My guess
    1) Apple Watch by far
    2) AirPods
    3) HomePods
    4) AppleTV


    Beatswatto_cobra
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