Early Access

10-QPeriod: Q1 FY2021

Apple Inc. Quarterly Report for Q1 Ended Dec 26, 2020

Filed January 28, 2021For Securities:AAPL

Summary

Apple Inc. reported a strong fiscal first quarter for 2021, with net sales reaching $111.4 billion, a significant 21% increase year-over-year. This growth was broad-based, with all product and service categories and all geographic segments showing increased net sales. The launch of the iPhone 12 lineup with 5G technology was a key driver, alongside continued strength in Mac, iPad, and the Wearables, Home, and Accessories segment. The Services segment also demonstrated robust growth, contributing positively to the company's top-line performance and demonstrating continued diversification. The company generated substantial operating income of $33.5 billion, a 31% increase from the prior year, indicating effective cost management and operational leverage. Diluted earnings per share rose to $1.68, up from $1.25 in the prior year's quarter. Apple continued its aggressive capital return program, repurchasing $24.0 billion in common stock and returning $3.6 billion in dividends, underscoring its commitment to shareholder value.

Financial Statements
Beta
Revenue$111.44B
Cost of Revenue$67.11B
Gross Profit$44.33B
R&D Expenses$5.16B
SG&A Expenses$5.63B
Operating Expenses$10.79B
Operating Income$33.53B
Interest Expense$638.00M
Net Income$28.75B
EPS (Basic)$1.70
EPS (Diluted)$1.68
Shares Outstanding (Basic)16.94B
Shares Outstanding (Diluted)17.11B

Key Highlights

  • 1Total net sales increased 21% year-over-year to $111.4 billion, driven by strong performance across all product categories and services.
  • 2iPhone net sales saw a significant 17% increase, largely attributed to the successful launch of the iPhone 12 lineup with 5G capabilities.
  • 3The Services segment continued its growth trajectory with a 24% increase in net sales, highlighting its increasing importance to Apple's overall revenue.
  • 4Operating income grew by 31% to $33.5 billion, demonstrating Apple's ability to translate sales growth into profitability.
  • 5Diluted earnings per share (EPS) rose to $1.68, a substantial increase from $1.25 in the prior year's quarter.
  • 6Apple repurchased $24.0 billion of its common stock and paid $3.6 billion in dividends, showcasing a strong commitment to returning capital to shareholders.
  • 7Greater China segment sales experienced a remarkable 57% increase, indicating strong market demand in the region.

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