Apple rakes in £93bn in just 3 months: Tech giant reports the biggest profit in corporate history after shoppers flock to buy iPhones and smart watches
Apple reported the biggest profit in corporate history as it raked in revenues of more than £1billion a day in the final three months of 2021.
The tech giant – which is the world’s biggest company – made a profit of £26billion during the quarter.
This came after turnover jumped 11 per cent to £93billion as Christmas shoppers stocked up on the latest iPhone 13 models, Apple Watches and the sixth-generation iPad mini.
US tech giant Apple – led by chief exec Tim Cook (pictured) raked in revenues of more than £1billion a day in the final three months of 2021
This was far ahead of the £83billion it made during its previous best quarter, at the end of 2020.
The holiday season is always the company’s most important period.
It made £53.5billion in phone sales alone – 9 per cent up from a year earlier and quashing fears that customers who stocked up on new devices 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 covers paid apps such as Apple TV+ and Apple Music, which saw revenue rise by 24 per cent to nearly £15billion.
It now has around 785m subscribers across its services – up from 620m a year ago. Chief executive Tim Cook said: ‘This quarter’s record results were made possible by our most innovative line-up of products and services ever.’
The numbers smashed Wall Street estimates – with Apple shares rising in after-hours trading.
Apple’s success came amid a turbulent start to the year for tech stocks.
On January 3 Apple’s shares hit a record high and the iPhone maker became the first company ever to reach a market value of $3trillion (£2.2trillion).
But it is now worth just under £2trillion after losing more than a tenth of its value since its peak as a wider sell-off knocked US tech titans that had seen their values spiral during the pandemic.
The Nasdaq Composite – which hosts household names including Netflix, Amazon and Microsoft – has lost almost 16pc of its value so far this year.
Apple’s earnings follow quarterly figures 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 ramped up.
It also said it struggled with supply chain disruption, which prevented its factories running at full steam, and that a global shortage of microchips would lower the number of cars it can deliver this year.
Apple has also been hit by supply problems as the rapid rebound in the global economy led to shortages of parts and bottlenecks in transport, particularly shipping.
In October Cook said logistical problems had deprived it of around £4.5billion that quarter.
Last night Apple said ‘very significant’ supply chain problems led to iPad shortages – and that it had taken another £4.5billion hit.
But it added that these issues were expected to ease in the current quarter because of ongoing work with suppliers.
The company’s results came as it announced a new feature that would turn iPhones into payment terminals.
Merchants would be able to accept fees with the tap of a credit card or another iPhone.
Apple Computers was founded in 1976 by college dropouts Steve Jobs and Steve Wozniak.
Cook had worked closely with Jobs and took over as chief executive in 2011 when the co-founder resigned weeks before his death of pancreatic cancer.
Apple has 80,000 employees worldwide, with a workforce of 6,500 in the UK.