Apple announced its results for the first quarter of 2021, so last year from October to December. This quarter, Apple’s flagship iPhone and its first proprietary Mac chip equipped with the M1, the Mac, were released, recording the highest sales ever recorded.
On January 27th (local time), Apple reported total sales for the first quarter to $111.4 billion, up 21% year-on-year. This is the first time that quarterly sales have exceeded $100 billion. In addition, net income for the same period was $2.86 billion.
In addition, Apple’s sales were $ 65.6 billion for iPhone, $ 8,7 billion for Mac, $ 8.4 billion for iPad, $ 1.3 billion for wearable home accessories, and $ 1.6 billion for service. The iPhone, wearable home accessories, and three services recorded the highest sales ever. The reason for the increase in sales of the iPhone 12 series is its response to 5G and the adoption of a new exterior design.
Apple CEO Timcook expressed appreciation to the employee who recorded the highest sales in history, saying that this quarter’s results could not have been realized without the constant innovation work of all Apple employees around the world. It also revealed that he was satisfied with the enthusiastic customer reactions to the latest Apple products offered during the holiday season, appealing that sales in the first quarter of 2021 recorded historical figures.
Apple CFO Luca Maestri said that this quarter’s performance was driven by product category growth, recording the world’s highest sales in each region, and the highest number of devices currently in use. CEO Tim Cook said that the number of active terminals has reached 1.65 billion units based on the installed base. CEO Tim Cook also revealed that there was strong demand for the iPhone 12 in China, saying that two of the top 3 smartphones sold in the Chinese urban area were the iPhone 12 series.
Apple did not announce its earnings forecast for the second quarter of 2021 following the Corona 19 epidemic. Also, Apple did not report the number of iPhones, iPads, and Macs sold in this quarter.
Meanwhile, Facebook also released a financial report for the fourth quarter of 2020. Revenues have risen more than expected, but it is likely to be hit by 2021 due to changes in iOS policy, and CEO Mark Zuckerberg criticized Apple in the announcement.
For Facebook’s fourth-quarter revenue, analysts predicted it would be $26.4 billion, but in reality it was $28.1 billion, 33% more than expected. It was an increase of $7 billion from the same period last year, and net income was $11.2 billion and $3.88 per share.
The increase in Facebook revenue appears to have been affected by the Corona 19 epidemic, and Facebook believes that if the Corona 19 situation changes in 2021, advertising revenue will also be affected. In addition, the Facebook advertising business is expected to be hit by Apple’s announcement that it will change the collection of personal information from the advertising system to a user permission system in iOS14.
Zuckerberg said that in line with its earnings release, he was increasingly seeing Apple as one of its biggest competitors. He may say that Apple is meant to help people, but he said this is definitely a competitive advantage.
He also told investors that he plans to stop recommending NGOs and political parties to users in the long term. This is a temporary measure taken in the 2020 U.S. presidential election, but in the future, the policy will be expanded to a global scale. In addition, the news feed also announced plans to reduce the amount of political content, but did not disclose details.
Although Facebook’s revenue is mainly driven by the advertising business, sales of virtual reality headset Oculus also increased by 156% over the previous year, or $875 million. Meanwhile, the number of active Facebook users in the United States and Canada fell from 195 million to 195 million in the same period last year. Related information can be found here ( Apple , Facebook ).