Apple Inc. crushed fiscal first quarter earnings expectations, on the back of strong demand for iPhones, wearables and services.
The tech behemoth’s earnings for the three months ending on December 28 ( fiscal first quarter) came in at $4.99 per share, handily beating the Street estimate of $4.55 per share. The earnings-per-share were also +19.4% higher from the same quarter last year.
Group revenues, increased +9% year-over-year to $91.8 billion in the quarter, compared to analysts' expectation of $88.4 billion.
CEO Tim Cook pointed out that Apple achieved its highest quarterly revenue ever, thanks to solid demand for iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables.
Cook also mentioned that during the holiday quarter, the company’s active installed base of devices grew in each of its geographic segments and has now topped 1.5 billion.
iPhone revenues increased +7.6% to $55.96 billion in the latest reported quarter. The company launched iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max in September of last year.
Services revenues surged +16.9% year-over-year to $12.72 billion. Subscribers to Apple’s services rose 33.3% year-over-year to 480 million
Revenue from wearable devices such as the AppleWatch and AirPods peaked at $10 billion, and exceeded analysts' estimates by $500 million.
Company gross margins improved by 40 basis points to 38.4%.
However, Mac sales declined -3.5% from last year to $7.16 billion, while iPad sales fell -11.1% to $5.98 billion.