Apple reports revenue growth of 11% in the first quarter

• Apple’s revenue rose to $123.9 billion beating Refinitiv’s estimate of $118.66 billion

• Revenue from iPad dropped by 14% to $7.25 billion 

The pandemic hasn’t been able to dampen the sales of Apple (NASDAQ: AAPL) which grew over 11% despite the ongoing shortage of supplies. 

The iPhone-maker reported its first-quarter earnings after the bell on Thursday beating analysts' estimates in all sectors except iPads.

Apple’s revenue rose to $123.9 billion beating Refinitiv’s estimate of $118.66 billion while its earnings per share (EPS) jumped over 25%, to $2.10 as compared to the estimated $1.89, year-over-year.

Also read: Apple stock to grow faster than the economy, investor expects

Revenue from its iPhone division was recorded a 9% growth year-over-year to $71.63 billion while its Mac generated a revenue of $10.85 billion rising by a whopping 25% year-over-year.

Revenue from its services, which include iCloud, Apple Music, search licensing, and App Store fees, grew strongly, rising by 25% to $19.52 billion and other products rose to $14.70 billion respectively.

Meanwhile, revenue from the iPad dropped by 14% to $7.25 billion against the estimated $8.18 billion. Cook attributed the iPad results to “significant” supply constraints.

The gross margin rose to 43.8% compared to the 41.7% estimated figure.

CEO Tim Cook said that the company’s supply issues were improving. He added that the December quarter was worse than Apple’s September quarter, in terms of supply challenges but remained optimistic about the March quarter.

“Our biggest issue is chip supply, it’s chip supply on legacy nodes and we’re doing okay on the leading edge stuff,” Cook said.

Also Read: Apple to hit $3-trillion market cap in 2022, LA investment firm Wedbush expects

Picture Credits: Inkl