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AAPL Stock Down 3%, Apple Sees Boosted Revenue Growth in Q1 2021 Earnings Report

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by Benjamin Godfrey · 3 min read
AAPL Stock Down 3%, Apple Sees Boosted Revenue Growth in Q1 2021 Earnings Report
Photo: Apple

The revenue growth that Apple recorded in China in the past quarter is not attributed to just the sales of its iPhone brands but also to other products that surpassed expectations.

American multinational technology company Apple Inc (NASDAQ: AAPL) has disclosed a boost in revenues recorded in the Greater China area as detailed in its earnings report for the fiscal Q1 2021 ended in December. As reported by CNBC, the Cupertino-based company reported a $100 billion revenue, the highest it has ever recorded in a single quarter and this growth was fueled by boosted sales in the Greater China area of Hong Kong and Taiwan.

At the earnings call held on Wednesday, Apple’s Chief Executive Officer Tim Cook noted that the growth can be attributed in part to the surge in the number of upgraders in the quarter. He affirmed that the upgrades during this time are “the most we’ve ever seen in a quarter.” The launch of the iPhone 12 series featuring the iPhone 12, iPhone 12 Pro, iPhone 12 Mini, and iPhone 12 Pro Max was one of the observed factors responsible for fueling the upgrades amongst the Chinese consumers.

“China also had a record number of upgraders during the quarter, the most we’ve ever seen in a quarter. I think probably some portion of this was that people probably delayed purchasing in the previous quarter as rumors started appearing about an iPhone,” Cook said on the earnings call. “Keep in mind that 5G in China is, the network is well established. And the overwhelming majority of phones being sold are 5G phones. And so I think there was some level of anticipation for us delivering an iPhone with 5G.”

Revenue for the Greater China region in the quarter ended December 26, 2020, came in at $21.31 billion, a boost of 57% in the year-ago period. The iPhones shipment to China according to IDC data came in at 11.2 million for October and November with December figures yet to be released.

Apple Growth in China was Also Boosted by Other Apple Products in Q1

The revenue growth Apple recorded in China in the past quarter is not attributed to just the sales of its iPhone brands. According to Cook, other products also surpassed expectations noting that the firm will not have been able to pull in the numbers with just a sole reliance on the iPhone sales.

“iPad did extremely well, far beyond the Company average. Mac was about the Company average. Wearables, Home, and Accessories was above the Company average. And so if you really look at it, we did really well across the board there,” he said.

The use of Apple services such as Apple Pay, as well as revenues from the App Store and its Cloud Services also boosted the growth record.

A key external factor in the performance of Apple is the woes suffered by its Chinese competitor Huawei Technologies. The restriction in doing business meted by the Trump administration has caused the company to tone down its deliveries, with Apple significantly taking some of its market shares.

Apple stock is closed down 0.77% to $142.06 despite the impressive stats revealed in the earnings call. The stock is down by an additional 3.22% in the pre-market.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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