The release of the iPhone 12 generated a 12% increase in quarterly sales leading to revenue of over $100 billion. These figures were considerably boosted by the company’s performance in China. Sales in China rose by 57% this past quarter, generating $21.3 billion. 5G towers are more widespread in China than they are in Europe. CEO Tim Cook believes this is a major reason for Apple’s excellent performance in China this quarter.
Apple’s revenue in China had fallen by 25%, the previous quarter. Apple were however expecting a good quarter and this temporary drop in revenue could be attributed to the fact that many customers were waiting to upgrade to the iPhone 12 which launched in October. This quarter Apple saw a record number of users upgrade their current iPhones.
2020 was a record year for the company, with profits growing by 29%. Apple became the first American company to reach a value of $2 trillion and at a current value of $2.4 trillion it is far and away the world’s most valuable public company.
CEO Tim Cook stated that Apple is in the middle of their “most prolific production period ever” and within two weeks of its launch, the iPhone 12 became the world’s best-selling 5G phone, second only to the iPhone 12 pro.
With people still working and studying from home, iPad and Mac sales are up 41% and 21% over the past year. Tim Cook however, believes that if it were not for the pandemic, sales would be even higher as most customers weren’t able to enter stores to purchase apple products.
“Taking the stores out of the equation, particularly for iPhones and wearables, there’s a drag on sales”
The brand now has over 1.65 billion active users, which accounts for 21.4% of the world’s population. CFO Luca Maestri said that the company has seen “double-digit growth in each product category” over the past quarter and that they “returned over $30 billion to shareholders during the quarter as we maintain a target of reaching a net cash neutral position over time.”