Since the beginning of the pandemic, Apple’s profits have doubled due to a spike in iPhone sales, especially in China. According to Apple’s CEO, the findings showed “optimism” for the future. Facebook, a competitor in the tech world, posted record profits and sales as well.
Apple's profits came to $23.6 billion, while revenue climbed 54 percent to $89.6 billion in the fiscal second quarter. https://t.co/VSQViGnFts
— Tech2 (@tech2eets) April 29, 2021
However, the social media behemoth cautioned that Apple’s new software update might jeopardize the company’s prospects later this year. Throughout the pandemic, Apple’s phone, software, and other gadget sales increased as people spent more time online working, shopping, and finding entertainment.
Apple’s profits doubled after introducing 5G
Customers continued to upgrade to Apple’s latest 5G phones, which were released last year, as well as purchase Mac computers and iPads to work and research from home, according to the company.
Sales to China nearly doubled, resulting in total sales of $89.6 billion (£64.2 billion) for the first three months of this year, up more than 50% from the same period last year.
Read here: iPhone 12: New version launched in 2020
Profit was $23.6 billion, up from $11.3 billion the previous year. “This quarter represents both the enduring ways our goods have helped our customers reach this moment in their lives, as well as the excitement consumers, seem to feel about better days ahead for all of us,” said Tim Cook, CEO of Apple.
According to Paolo Pescatore, PP Foresight analyst
Apple had “another blowout quarter,” according to PP Foresight analyst Paolo Pescatore. “The iPhone remains a core product and gateway to the Apple universe,” he continued, adding that it serves as “a central launchpad” for Apple to offer additional services.
As per Sophie Lund-Yates
Customers have proven able to “splurge on big-ticket products due to a global transition to working from home, and the fact that people have found comfort in treating themselves,” according to Sophie Lund-Yates, the Equity Analyst at Hargreaves Lansdown. “The sheer size of Apple’s sales demonstrates the hold the gleaming embossed piece of fruit has on global consumers,” she continued.
How does Facebook make money?
In the first three months of the year, Facebook, which makes money from ads rather than consumer electronics, reported record revenues and profits. Consumers spent more time at home, and their purchasing power moved online, resulting in sales of $26.17 billion, much beyond analysts’ expectations.
The profit was also higher than anticipated, coming in at $9.5 billion. Facebook said it expects revenue to remain stable or rise moderately in the coming months, but acknowledged that a new feature launched by Apple this week allowing users to prevent apps from collecting user data might “significantly” hurt its business.
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This week, it wasn’t just Apple and Facebook that reported record profits. Google and Microsoft both released eye-popping quarterly results yesterday. Many people will not be surprised by this. People are working and playing more online as a result of global lockdowns. But it’s unclear if this was a pandemic resurgence. Or have people’s habits been permanently altered? These data strongly indicate the latter.
Apple’s numbers are outstanding in a variety of industries around the world. Sales were up sharply in places like China, which has been largely free of lockdowns in recent months. Apple’s profits gave an optimism therefore advertisers are having good hopes about online spending, according to Facebook’s data.