Summary
Apple Inc. reported robust financial performance for the quarter ending March 26, 2021, demonstrating significant year-over-year growth across key metrics. Total net sales surged by 54% to $89.6 billion, driven by strong demand across all product and service categories, notably iPhone, Mac, and Services. This surge was particularly pronounced compared to the pandemic-affected prior year quarter, but also showed healthy growth over the six-month period. The company's gross margin improved to 42.5%, reflecting strong product mix and favorable foreign currency impacts. Net income and diluted earnings per share also saw substantial increases, indicating strong operational leverage and profitability. Apple continues its aggressive capital return program, repurchasing $19.0 billion in stock and paying $3.4 billion in dividends during the quarter, underscoring its commitment to shareholder value. Geographically, all regions experienced strong growth, with Greater China and Rest of Asia Pacific showing exceptional year-over-year increases of 87% and 94%, respectively, for the quarter, highlighting the company's expanding global reach. Despite increased R&D and SG&A expenses, driven by investments in headcount and product development, Apple maintained strong operating income growth. The company's liquidity position remains robust, with substantial cash and marketable securities, providing confidence in its ability to meet financial obligations and fund future growth initiatives. Management expressed confidence in the company's ability to navigate ongoing economic uncertainties, including the lingering effects of the COVID-19 pandemic.
Financial Highlights
55 data points| Revenue | $89.58B |
| Cost of Revenue | $51.51B |
| Gross Profit | $38.08B |
| R&D Expenses | $5.26B |
| SG&A Expenses | $5.31B |
| Operating Expenses | $10.58B |
| Operating Income | $27.50B |
| Interest Expense | $670.00M |
| Net Income | $23.63B |
| EPS (Basic) | $1.41 |
| EPS (Diluted) | $1.40 |
| Shares Outstanding (Basic) | 16.75B |
| Shares Outstanding (Diluted) | 16.93B |
Key Highlights
- 1Total net sales increased by a remarkable 54% year-over-year to $89.6 billion for the quarter ended March 26, 2021, showcasing a strong rebound and demand.
- 2iPhone sales saw a significant 66% increase year-over-year to $47.9 billion, driven by new model launches and favorable sales mix.
- 3Services revenue continued its steady growth, up 27% year-over-year to $16.9 billion, demonstrating the increasing importance and recurring nature of this segment.
- 4Gross margin improved to 42.5% from 38.4% in the prior year quarter, indicating improved pricing power, product mix, and operational efficiencies.
- 5Net income more than doubled to $23.6 billion, resulting in a diluted EPS of $1.40, up from $0.64 in the same period last year.
- 6Apple returned $22.4 billion to shareholders through share repurchases ($19.0 billion) and dividends ($3.4 billion) during the quarter.
- 7All geographic segments reported substantial year-over-year net sales growth, with Greater China (87% increase) and Rest of Asia Pacific (94% increase) showing particularly strong performance.