IPhone sales top $100B for first time

Tech giant forgoes revenue forecast, citing uncertainty

Apple reported quarterly revenue that topped $100 billion for the first time, fueled by strong holiday sales of the iPhone 12, the company’s first device for 5G wireless networks.

Shares of the the Cupertino-based technology giant were little changed in extended trading. The stock had surged more than 20% in the past three months, so results that crushed Wall Street estimates weren’t enough to propel the shares higher.

Apple also didn’t provide a revenue forecast for the fourth quarter in a row. The company previously cited uncertainty from the Covid-19 pandemic in choosing not to provide projections.

“It was an extremely strong quarter. What’s likely weighing on the stock at the moment is that they didn’t give guidance,” said Shannon Cross of Cross Research.

Sales jumped 21% to $111.4 billion in the period ended Dec. 26, the company said in a statement. Analysts, on average, expected $103.1 billion, according to data compiled by Bloomberg. Profit was $1.68 a share, also topping Wall Street estimates.

Expectations have been sky high for the company on suggestions of a new iPhone “super cycle,” where millions of existing users upgrade aging Apple handsets. The company also recently introduced other new devices, including an updated Apple Watch, and demand increased for iPads, Mac computers and services from consumers working and studying from home during the pandemic.

Revenue was propelled by the iPhone 12, the first iPhone line to include four new models and 5G capabilities. Handset sales were $65.6 billion, easily beating Wall Street estimates of $60.3 billion.

“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” Luca Maestri, Apple’s chief financial officer, said in a statement.

Beyond the iPhone, Apple reported iPad sales of $8.44 billion, topping projections of $7.58 billion. The company launched a redesigned iPad Air and a faster entry-level model during the quarter. Mac sales were $8.68 billion, missing