Apple's Historic Quarter!

Apple posted their financial results for the January to March quarter on Wednesday after the market closed.  Analysts who are usually wrong were VERY wrong this quarter.  Apple had $89.58 billion in revenue which is 54% over the same quarter last year and about 15% higher than what was expected.  Profits were also outstanding with $1.40 per share which is over twice last year and blew away the analyst's estimate of $0.99/share.  Every sector of Apple's business showed double digit growth leading Apple to increase their dividend to shareholders by 7% and the Apple Board of Directors also allocated $90 billion to share repurchases.

Prior to the financial results Apple had announced a major initiative to create jobs in the USA including a new campus in North Carolina.  Tim Cook also spoke of the 8 gigawatts of renewable energy that Apple is bringing to the grid and their $200 million Restore Fund to help communities build sustainable industry and work towards their carbon reduction goals. Apple's commitment to the environment is found in their products and the use of renewable resources. Bravo Apple!

"This quarter for Apple wouldn't have been possible without the tireless and innovative work of every Apple team member worldwide," said Apple's  Tim Cook. "We're gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we're a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States."

The gross margin rose from 38.4% to 42.5% which had a lot to do with the massive profits. But clearly Apple has the right products for a pandemic and post-pandemic society as Apple products are reaching a broad audience.  It is amazing but Apple reported that more that 50% of iPad and Mac buyers are new to the products.

Apple did not give specific guidance for the next quarter but indicated that they felt June quarter revenues will grow by double digits but that the normal decline in revenues from the 2nd to 3rd quarter may be more pronounced that in previous years. They also mentioned the pandemic and supply constraints as impediments to growth. Nevertheless, Tim Cook said in reference to shortages and demand "We expect to be supply gated, not demand gated."