Apple crushes earnings amid strong demand for iPhones, other products

Strong demand for Apple’s iPhone 12 and other hardware drove the tech giant to record second-quarter results, according to the company’s earnings release on Wednesday.

Apple’s revenue rose 54% to $89.6 billion in the second quarter as customers stuck at home during the coronavirus pandemic stocked up on tech products. Sales surpassed expectations on Wall Street, where analysts projected quarterly revenue of $77.35 billion, according to Refinitiv data. The company posted earnings per share of $1.40, topping an expected 99 cents.

The iPhone 12, the first Apple smartphone to feature 5G technology, boosted the category to $47.94 billion in sales, well ahead of analyst estimates. Revenue from iPads, Mac computers and wearables such as AirPods also exceeded expectations.

"This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us," Apple CEO Tim Cook said in a statement. "Apple is in a period of sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world."

Apple shares rose more than 3% in after-hours trading on the strong results. The company said its dividend would increase 7% to 22 cents per share. Apple authorized an additional $90 billion in stock buybacks.

Apple’s services segment -- which includes iCloud, Apple Card and Apple Pay – generated $16.9 billion in revenue. The Mac computer segment drove $9.1 billion in sales, the iPad segment generated $7.81 billion and the wearables segment topped $7.84 billion.

"We are proud of our March quarter performance, which included revenue records in each of our geographic segments and strong double-digit growth in each of our product categories, driving our installed base of active devices to an all-time high," Apple CFO Luca Maestri said in a statement.

The company did not provide a sales forecast for its fiscal third quarter. Apple hasn’t provided projected results in recent quarters due to uncertainty related to the pandemic.

Sales outside the United States comprised 67% of quarterly revenue. The total included roughly $22.3 billion in sales in Europe and $17.7 billion in sales in China.

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