Apple, the largest company in the U.S., increased its profits by more than 50% in the first quarter of this year (based on Apple’s own standards). It is thanks to increased sales of iPhone 5G, its flagship product, up to $89.58 billion.
Apple announced its first-quarter sales on the 28th (local time) at $89.58 billion. It is up 54% from the same period last year, the Wall Street Journal (WSJ) and economic media CNBC reported.
Its net profit more than doubled to $23.6 billion. It was $1.40 in EPS.
Both sales and net profit greatly surpassed Wall Street’s consensus (average earnings forecast). Wall Street estimates compiled by financial information firm Refinitiv amounted to $77.36 billion in sales and $0.99 in earnings per share.
Apple recorded double-digit sales growth for all of its products. Sales in the iPhone sector, which changed its design for the first time in three years with 5G for the first time. It rose 65.6% from a year ago to $47.94 billion.
iPhone accounted for more than half of its total sales at 53.5%, playing a significant role in Apple profits
Sales in the service sector, which includes App Store operations and Apple News and Apple TV, grew 26.7% to $16.9 billion, accounting for the second largest portion.
Its desktop and laptop businesses increased sales by 70.1% and its tablet PC iPad businesses by 78.9% respectively. WSJ explained that the demand for these products increased a lot thanks to office workers and students working and studying at home.
Wall Street predicts that Apple will make an all-time high performance this year, surpassing $70 billion in annual net profit. This is almost a third more than last year.
Apple said it would raise its dividend by 7 percent to $0.22 per share. The board also said it has approved an additional $90 billion to its share purchase costs. This is well above $75 billion in 2019 and $50 billion in 2000.
