Apple net profits double in Q2

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Apple net profits double in Q2

 Apple net profits double in Q2
Image source: Apple store with the logo and iphoneX ads in Portland, Oregon. © Frostedcmos | Megapixl.com

Summary

  • Net Profit of Apple more than doubles; sales up 54%
  • Announces cash dividend of US$0.22 per share; increase in the buyback programme
  • Shares of the company trading higher in afterhours

World’s largest technology company by market capitalisation, Apple Inc (NASDAQ:AAPL), reported doubling of its net profits in first quarter of the financial year 2021.

Apple reported net profit of US$23.63 billion in the quarter ended March 2021, compared with US$11.25 billion in the corresponding quarter last year.

Apple follows financial calendar of October-September.

The surge in the bottomline was driven by a healthy topline growth. Buoyed by increased sales of its iPhones, the total revenues of Apple in the March quarter stood at US$89.58 billion, 54% more than US$58.31 billion clocked in the corresponding quarter last year.

The sales of Apple’s iconic iPhones stood at US$47.94 billion, 66% more than US$28.96 billion in the March 2020 quarter. Significantly, iPhone sales constituted 54% of the company’s total sales in the quarter.

Meanwhile the sales value of Apple’s Macbook – a line of personal computers – increased by 70% and the sales of iPad surged by 79%.

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“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said Tim Cook, Apple’s CEO.

Meanwhile the company’s board has announced an increase of 7% in cash dividend of US$0.22 per share on the common stock – to be paid on 13 May 2021. The record date for the dividend payout has been set at the close of business on May 10, 2021. The company added that it has also authorised an increase of US$90 billion to the existing share buyback program.

This bonanza for shareholders, coupled with blockbuster results, triggered a surge in the price of Apple shares on Wall Street – up 2.34% in the afterhours.

On Wednesday, other tech titans Microsoft and Alphabet also announced the blockbuster results for the quarter.

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