Apple dials up a sales record as it makes $111bn in just three months: Tech giant boosted as demand for iPhones smashes expectations
Apple last night revealed record sales of more than $110billion after demand for its new iPhone smashed expectations.
In an extraordinary set of results, the US giant said sales in the final three months of 2020 had increased from £67.1billion to £81.5billion ($111.4billion) while profits rose from £16.3billion to £21billion.
The bonanza marks the first time Apple has broken through $100billion in quarterly sales – with the firm’s numbers beating even Wall Street’s most optimistic forecasts.
Apple, led by Tim Cook (pictured) said sales in the final three months of 2020 had increased from £67.1bn to £81.5bn ($111.4bn) while profits rose from £16.3bn to £21bn
And it came after fellow tech titans Facebook and Tesla had posted updates for the same period just minutes beforehand.
Social networking giant Facebook brought in revenues of £20.5billion after a shift towards e-commerce in the pandemic boosted demand for online advertising, while electric car maker Tesla said it made £7.9billion.
Apple’s sales, covering the crucial Christmas period, were boosted by strong demand for its new 5G-enabled iPhone 12, as well as for its Mac computers and online subscription services such as Apple Music.
Chief executive Tim Cook (pictured with the iPhone 12) said: ‘We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season.
‘Our December quarter business performance was fueled by double-digit growth in each product category.’
Iphone sales in particular jumped 17 per cent to £48billion, boosted by the release of the new model.
Sales of Mac computers were also up by 21 per cent, while iPads were up 30 per cent. Revenues from services rose 24 per cent to £11.5billion.
Just hours before the Apple results, rival Microsoft had also posted a huge jump in sales boosted by demand for its cloud computer services.
In sharp contrast to many traditional businesses, the technology companies have benefitted from booming demand for gadgets and digital services during the pandemic as people spend more time relaxing and working indoors.
Apple’s numbers last night – for the first quarter of its financial year – came after it said sales rose 3.2 per cent to £200.7billion in the year to September 26.
Facebook’s fourth quarter results yesterday mean its full-year sales rose from £50.9billion to £62.8billion, while profits leapt from £13.5billion to £21.3billion. Most of its sales come from advertising, which rose by 21 per cent to £61.5billion.
The company said the number of people using its social networks on at least a monthly basis had increased by 12 per cent to 2.8billion.
Mark Zuckerberg, the company’s boss, said: ‘We had a strong end to the year as people and businesses continued to use our services during these challenging times.’
At Tesla, the final three months of 2020 brought its full year sales up from £18billion to £23.1billion.
The electric car maker reported a full year profit of £527million, up from £26million in 2019 – when it had still been loss-making for the first half.
But while Tesla succeeded in posting a profitable final quarter, it missed Wall Street’s expectations of about £790million, posting £197million instead, sending its shares almost 5 per cent lower in after-hours trading.
It’s shares have rallied by about 700 per cent in the past year, giving it a valuation of more than £600billion and making it America’s fifth most valuable firm.