Highlights from the earnings report and conference call
Origin: appleinsider • highlights from the earnings report and conference call
- This quarter marks Apple’s first with revenue above $100 billion.
- Apple appears to have beaten most analyst expectations during this quarter -MP
- This result caps off the most challenging year any of us can remember,» Cook said
- Tim Cook says Apple has seen double-digit growth across its entire product lineup.
- Apple has «hit a new high watermark» for installed devices with 1.6 billion devices worldwide. iPhone grew by 17% year-over-year, driven by strong iPhone 12 demand.
- iPad and Mac grew by 41% and 21% respectively. Demand has been «very strong» for the iPad Air and M1-equipped Mac devices.
- The Wearables, Home, and Accessories segment grew by 30%. Each subgroup of the broader segment set records during the quarter.
- Cook speaks a bit about new Services offerings, including Apple Fitness+ and Apple One.
- On International Privacy Day, the Apple CEO says: «We set new standards to users right to privacy, not just for our products, but to be the ripple in the pond to move the industry forward.»
- Now, Cook is talking about its racial equity initiatives, including the recently announced Propel Center and other endeavors.
- Apple staffers have donated more than $600 million and volunteered more than 1.6 million hours since it launched the Apple Giving Program.
- Cook has passed the call to Maestri.
- Revenues increased nearly $20 billion from the year-ago quarter.
- iPhone, Wearables, Home and Accessories, and Services reached all-time high. Mac set a new December record
- Apple established new records across its Services categories and in most geographies.
- Gross margins clocked in at 39.8%, up 160 basis points. Maestri attributes it to better sales and a higher mix. Product gross margin was 31.5%, while Services was 68.4%
- iPhone revenue is up 17% year-over-year. The iPhone has reached an all-time high installed base of 1 billion devices
- Apple touts research indicating iPhone 12 customer satisfaction is 98% for the iPhone 12 lineup.
- Maestri says new Services like Fitness+ and Apple TV+ are contributing to Services growth
- Installed base for Services reached all-time high for every category. Apple has exceeded 600 million paid subscriptions before 2020 ended. Now has more than 620 million, up 140 million from a year ago
- Payment services have expanded with 90% of stores now accepting Apple Pay
- About 75% of Apple Watch customers are first-time buyers, contributing to the product’s reach. Wearables is now the size of a Fortune 120 company.
- Mac set a new record in the December quarter with strong double-digit growth across geographies. Strong demand for M1 Mac
- Performance of the iPad is up 41% and, like the Mac, is also strong in every geographic segment. Japan set new records.
- Apple says customer satisfaction is 93% for Mac and 94% for iPad. Half of customers were new to the products
- On cash position: Apple ended its quarter with $196 billion in cash along with marketable securities
- Apple retired $1 billion in maturing debt. Total debt of $112 billion.
- Apple says it has $84 billion in net cash. Has returned $30 billion to shareholders. $24 billion through repurchasing of 200 million Apple shares.
- Apple will not be guiding to a specific revenue range for the March quarter, citing coronavirus concerns.
- Says it can provide directional insights provided COVID doesn’t get worse.