Apple Delivers Another Record Quarter

Posted on April 29, 2021 by Paul Thurrott in Apple with 25 Comments

Apple reported record quarterly earnings last night, with a net income of $23.6 billion on revenues of $89.6 billion, a gain of 54 percent year-over-year. That’s almost literally as much as Google and Microsoft combined.

“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. “These results allowed us to generate operating cash flow of $24 billion and return nearly $23 billion to shareholders during the quarter. We are confident in our future and continue to make significant investments to support our long-term plans and enrich our customers’ lives.”

As always, the iPhone was Apple’s biggest business in the quarter, with $47.9 billion in revenues, accounting for 53.5 percent of Apple’s overall revenues. More impressive, however, is the iPhone’s YOY revenue growth: Apple sold “only” 28.9 million iPhones in the year-ago quarter, so iPhone revenues grew an incredible 60 percent. Given the comparable product mixes and pricing, it’s reasonable to assume that iPhone unit sales grew by a similar number—let’s call it just north of 50 percent—YOY as well. That’s not just impressive, it’s something else entirely.

Apple’s other businesses saw incredible growth as well.

Services, Apple’s second-largest business, delivered $16.9 billion in revenues in the quarter, up 21 percent YOY. And Mr. Maestri said during the post-earnings conference call that Apple now has “more than 660 million paid subscriptions” across its Apple One and other subscription offerings. The Mac surged 41 percent to $9.1 billion in revenues. Wearables, Home, and Accessories delivered $7.84 billion in revenues, up 25 percent. And the iPad grew 44 percent to $7.8 billion in revenues.

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Comments (25)

25 responses to “Apple Delivers Another Record Quarter”

  1. jason_e

    That is pretty incredible especially considering their over-all marketshare. Imagine if they had Windows/Android marketshare numbers.

    • Paul Thurrott

      I would imagine that the growth would be slow to non-existent in that case.
      • michael_babiuk

        In reply to paul-thurrott: Well, if Apple increased sales (year over year) to match Windows/Android marketshare numbers … well … their growth would be anything BUT non-existent. Very Big Grin.
        BTW, viewed this week’s TWIT episode. Hope you are feeling better. Your microphone might never be the same, however.

  2. bluvg

    "That’s almost literally as much as Google and Microsoft combined."

    Revenue side, for sure, not so much for net income. Kudos to Apple, though. They're crushing it, the M1 is super impressive, and that's just the first gen (granted it has an advantage partly due just to the 5 nm process). If their competition isn't in a scramble over the M1 and especially its successors, they're in trouble.

  3. WaltC

    And not a penny from my pocketbook, I'm always glad to say...;)

    • locust_infested_orchard_inc.

      Good wo(man). !! ?? You're doing yourself no disservice by shunning this $2 trillion entity who were in cahoots with the Irish government in winning their tax avoidance case against the EU in July 2020. ?
  4. Saarek

    impressive figures as always, but what a jump in Mac revenue. Yes, I know the pandemic has added to the figures, but even so that is one hell of a huge jump and it's great to see.

    • bluvg

      In reply to Saarek:

      "what a jump in Mac revenue"

      And a good portion of those additional dollars are right out of Intel's pocket.

      • locust_infested_orchard_inc.

        Precisely. Both the people and government of Ireland have and shall continue to suffer from the loss of €13 million in Apple's Double Irish with a Dutch Sandwich tax avoidance scheme.
      • Truffles

        In reply to bluvg:

        Especially as during the online event a couple of weeks ago Tim Cook said that M1 models now account for the majority of Mac sales.

        • Paul Thurrott

          Yeah, but that's not surprising. Most Macs sales were always the cheapest models, and those are all now M1-based. That's not about M1, it's about the reality of that market. Good marketing though.
  5. j5

    I think their brand name has a lot of weight to it, especially when it comes to privacy and “build quality.” And people are willing to, as that meme says “shut and take my money”, spend their money on products and brands that they like and trust.

    I switched to a M1 MacMini this year and happy with the Apple ecosystem. I’m no fanboy because I like Windows to I just like Apple products and it’s even better now that it’s completely within their ecosystem. I’m a tech geek but I’m also a bit of a normie how that I’m older. So I’m getting to that point where if it works I don’t want to mess around with tweaking it etc. And don’t mind spending extra money for a product when I know it’ll be supported for years down the road versus a couple.

    • eric_rasmussen

      In reply to j5:

      Agreed - I used to love messing around with Linux, spending weeks to get things just right. Now I just want things to work, I don't have the time that I used to.

  6. will

    "Yea Apple is done now! Their run is over and it's all going to come crashing down!"


  7. cavalier_eternal

    There are some math issues in when it comes to your growth percentages.

    Services Q220 13,348, Q221 16,901 that is a 26.6% growth not 21%

    Mac Q220 5,351, Q221 9,102 5,351 that is 70% growth not 41%

    iPad Q220 4,368, Q221 7,807 that is 78.7% growth not 44%

    iPhone Q220 28,962, Q221 47,938 is 65% growth not 60%

    Spitballing it, I think you used the wrong denominator it figuring out the percentages.

  8. bettyblue

    Second quarter Mac sales (according to other news sites) saw an increase of 70% which is M1 mac driven. I suspect Mac sales will remain high during the migration to the M series.

    iPad revenue was north of 75% as well, which is huge.

    • Greg Green

      In reply to bettyblue:

      “We’re seeing strong first-time buyers on the Mac … it continues to run just south of 50%,” Cook told CNBC’s Josh Lipton. “And, in China, it’s even higher than that … it’s more around two-thirds. And that speaks to people preferring to work on the Mac.” 

  9. codymesh

    I guess i'm stupid but where the [email protected]^%k is the growth coming from? at Android's expense? or are people buying 2 iPhones now? is the smartphone market expanding at all?

    • cavalier_eternal

      In reply to codymesh:

      I’d guess there are a lot of upgrades due to the inclusion of 5G.

    • red.radar

      In reply to codymesh:

      I would buy multiple devices if it didn't require a dedicate service subscription to my cell carrier. I love to have an Iphone (probally my older one) when I am in the yard or working in the shop. Something cheaper that if I dropped I don't cry over (get another from ebay for 100 bucks). But then have my "daily driver" for when i am going to work. Even love to have different app profiles for each of the devices. My recreational iphone can have apps loaded for those tasks and my work / daily driver can have different apps.

      I wouldn't mind having multiple iphones. I have multiple computers dedicated to different tasks...why not multiple phones? And maybe I could entertain multiple subscriptions to my cell carrier...but I want people to call one number and reach me on any of the devices I could be using.

    • bettyblue

      In reply to codymesh:

      I would imagine that during the pandemic, 2020, that people upgraded less because of economic worry. The iPhone was actually delayed because of this. Now things are surging so a big uptick for these kind of purchases.

      I just read a WSJ story today that said hotel/resorts and cruise ship stocks are jumping up 30+% while both Zoom and Peloton stocks have dipped 16% and 30% respectively as people are coming out of the pademic mindset and getting back to normal.

    • glenn8878

      In reply to codymesh:

      Verizon offered a 2 for 1 deal for new lines. I took the offer last year to buy two iPhone 11's. I'm not even bothering to buy the top of the line iPhone so Apple got the iPhone line into segments where everyone can buy the phone they can afford at higher pricing schedules.

    • Chris_Kez

      In reply to codymesh:

      Two models of iPhone 12 were the top-selling smartphones in China last quarter, and 4 of the top 6.

    • Pbike908

      In reply to codymesh:

      My guess is they are taking all the high end wealthier consumers. They are crushing Android flag ship devices. If I were going to pay $600 or more for a smartphone, I would buy an Iphone. Their cameras are better. Imessage eats android messaging lunch, their limiting of apps from tracking folks across the device is a winner, as is tracking blocking in safari on the Mac. Android tablets are a joke compared to Ipad. The M1 processors are a hit One can't argue with how well apple has integrated pho es, tablets, and computers. I am SERIOUSLY considring ditching Android and Windows.

  10. macguy59

    Pent up demand for iPhone upgrades and a big chunk of Android switchers. The dream of iMessage on Android is dead ?