The ultimate profit machine: Apple raises £26 billion in just three months to report biggest profit in history as customers buy iPhones and watches en masse
Apple reported the largest profit in company history, as it raked in more than £1 billion a day in sales in the last three months of 2021.
The tech giant – the world’s largest company – made a profit of £26 billion in the quarter.
This came after sales jumped 11 percent to £93 billion as Christmas shoppers stock up on the latest iPhone 13 models, Apple Watches and the sixth-generation iPad mini.
US tech giant Apple – led by CEO Tim Cook (pictured) raked in more than £1bn a day in the last three months of 2021
This was well above the £83bn it earned during its previous best quarter, at the end of 2020.
The holidays are always the most important period of the company.
It made £53.5 billion in phone sales alone – 9 percent more than a year earlier and allaying fears that customers who had new devices in stock during the pandemic would be unwilling to pay for upgrades.
Demand for iPhones was highest in China.
Apple also got a boost from its services business, which includes paid apps like Apple TV+ and Apple Music, which saw revenues rise 24 percent to nearly £15 billion.
It now has approximately 785 million subscribers to its services – up from 620 million a year ago. Chief executive Tim Cook said: “This quarter’s record results have been made possible by our most innovative lineup of products and services ever.”
The numbers crushed Wall Street’s estimates — with Apple stock rising in after-hours trading.
Apple’s success came amid a turbulent start to the year for technology stocks.
On January 3, Apple shares hit an all-time high and the iPhone maker became the first company to ever reach a market value of $3 trillion (£2.2 trillion).
But it’s now worth just under £2 trillion after losing more than a tenth of its value since its peak when a wider sell-off beat US tech titans who had seen their values soar during the pandemic.
The Nasdaq Composite — which hosts household names like Netflix, Amazon and Microsoft — has lost nearly 16 percent of its value so far this year.
Apple’s earnings follow quarterly earnings from Microsoft and Tesla, both of which reported higher profits earlier this week.
Tesla said it had a “breakthrough year” in 2021 as sales of its electric cars surged.
It also said it struggled with supply chain disruption, which prevented its factories from running at full capacity, and that a global shortage of microchips would reduce the number of cars it can deliver this year.
Apple has also been hit by delivery issues, as the rapid recovery of the global economy led to parts shortages and bottlenecks in transportation, especially shipping.
In October, Cook said logistical problems had robbed the company about £4.5 billion in that quarter.
Last night, Apple said ‘very significant’ supply chain problems had led to iPad shortages – and that it had taken another £4.5 billion blow.
But it added that these issues are expected to ease in the current quarter due to ongoing work with suppliers.
The company’s results came when it announced a new feature that would turn iPhones into payment terminals.
Merchants could accept fees with a tap on a credit card or another iPhone.
Apple Computers was founded in 1976 by high school leavers Steve Jobs and Steve Wozniak.
Cook had worked closely with Jobs and took over as chief executive in 2011 when the co-founder resigned just weeks before his death from pancreatic cancer.
Apple has 80,000 employees worldwide, with a workforce of 6,500 in the UK.