Apple’s steady stream of hardware upgrades and new services launched throughout the pandemic has held the company in good stead going into 2021.
The company on Wednesday reported revenues of $89.6 billion and a profit of $23.6 billion for the three months ending March 27, blowing past analyst forecasts. Apple shares surged more than 3% after-hours following the report.
iPhone sales were at nearly $48 billion, a 65% increase over the same quarter last year, as consumers continued shelling out the big bucks to upgrade to Apple’s first 5G smartphone lineup. The company’s overall product sales were $72.6 billion, buoyed by the launch of new iPads, the Apple Watch Series 6 and an updated range of MacBooks with Apple’s in-house silicon chips.
Apple’s services revenue jumped around 27% to $16.9 billion, as new software products such as its Fitness+ program and its Apple One subscription bundle continued to gain traction.
The company unveiled several products and services at its “Spring Loaded” event last week, including a new lineup of iMac desktop computers, a long-rumored Bluetooth tracking device called AirTag, a podcast subscription service and a purple version of its iPhone 12.
Earlier this week, the company said it is doubling down on its US manufacturing and corporate presence with an additional $80 billion investment.
At the same time, Apple is facing several pressures from regulators and other tech companies. The iPhone maker is locked in a heated dispute with Silicon Valley peer Facebook over its new privacy requirements that threaten the social media company’s core advertising business, as well as a legal battle over the App Store with Epic Games, the company behind popular video game Fortnite.
Apple’s App Store is also under scrutiny from US lawmakers over antitrust concerns.