TOPLINE Apple reported a profit of $23.6 billion in its second quarter, up twofold from a year ago, on record sales of $89.6 billion, blowing past analysts’ expectations as iPhone sales remained strong after a record end to 2020.

KEY FACTS

• Apple’s sales were up 53.7% jump from the same quarter last year, exceeding the $77.4 billion expected by analysts.

• Net earnings were $1.40 per share, also well ahead of the consensus analyst expectation of 99 cents per share.

• iPhone sales totaled $47.9 billion, accounting for 53% of Apple’s total revenue, far surpassing the $29 billion reported in the first quarter of 2020 and the $41.7 billion predicted by Wall Street analysts.

• Revenue from services like iTunes and the App Store grew 27% to $16.9 billion, and sales of Mac computers, iPads and accessories like AirPods and watches also increased from last year.

CRUCIAL QUOTE

“Success was broadly distributed across our product categories,” Apple CEO Tim Cook said in a Wednesday evening conference call.

KEY BACKGROUND

In the final three months of last year, Apple logged the best quarter in its 45-year history, topping $100 billion in total sales and growing revenue for virtually every product line. Over the last decade, iPhones have served as the Cupertino, Calif.-based company’s largest driver of revenue. Some observers expected iPhone sales to remain fairly strong at the start of this year, as consumers continue upgrading to pricier 5G-enabled smartphones. But the company has also rapidly increased the share of its revenue from online services, and sales have grown for accessories like watches and AirPods.

TANGENT

It’s not unusual for Apple’s revenue to drop significantly from the end of one year to the beginning of the next, as holiday shopping brings consumers into stores and drives digital sales.

FURTHER READING

The Two Most Important Numbers In Apple’s Earnings Announcement (Forbes)

By Joe Walsh, Forbes Staff