Finest quarter in smartphone historical past

Apple reported a blowout profit on Wednesday. Even during a global pandemic, every single product line was active, resulting in the company’s first quarter with sales of over $ 100 billion.

But Apple is best known for the iPhone, which accounted for nearly 59% of the company’s sales in the vacation quarter. The iPhone is booming, too: Revenue rose 17% year over year to a whopping $ 65.6 billion in one quarter. This is a big improvement over the same quarter last year, when sales rose just 7.6% year over year.

Apple is no longer offering sales for its products, but according to an estimate by research firm IDC, Apple shipped 90.1 million phones in the quarter. According to analyst Francisco Jeronimo, this is the largest number in a quarter since IDC began tracking smartphones.

Apple’s dominant quarter is adding fuel to the so-called “super cycle” investor thesis, which combines must-have updates with the natural customer upgrade cycle to fuel revenue growth. Analysts saw this year’s iPhone 12 models as a good candidate for a super cycle as they had a new design and added 5G, which allows the devices to connect to faster wireless networks.

In a note on Wednesday, Wedbush analyst Dan Ives predicted that the current cycle should “dwarf the previous 2015 iPhone record, a success we believe to be forever.”

Tim Cook, Apple’s CEO, also said in an interview with CNBC that the company’s iPhone results would have been better had it not been for the store closures caused by the ongoing pandemic.

“If you take businesses out of the equation, especially for iPhones and wearables, it weighs on sales,” Cook told CNBC’s Josh Lipton.

Speaking on a conference call with analysts, Cook said the new iPhones not only encourage current iPhone users to open their wallets and upgrade, but also convince people who previously used competitor phones to get their first iPhone.

“Looking at the iPhone 12 family, we’ve found that both switches and upgrades are increasing year on year. In fact, we’ve seen the largest number of upgrades we’ve seen in any quarter,” said Cook.

5G remains a potential tailwind for iPhone sales for the remainder of the year, Apple announced on Wednesday. Cook said that while 5G was well established in China, resulting in strong iPhone sales, 5G cellular networks are not yet as developed in other regions, particularly in Europe.

“I think most of that growth is likely to be there too,” said Cook.

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