HomeNewsiOS (Apple)Apple reports the largest quarterly profit in the history of the company

Apple reports the largest quarterly profit in the history of the company

The largest IT giants reported strong earnings in the spring quarter of 2021. Experts attribute this to the pandemic, which has influenced the increase in demand for technological solutions around the world.

For example, for Apple, this period was the most profitable in the entire 45-year history of the company. It earned $ 21.7 billion, while, compared with a year earlier, its revenue increased by 36% to $ 81.4 billion, exceeding all analysts’ expectations.

Experts predict that Apple’s annual profit will be $ 86 billion, which is 51% better than in 2020. Last year, analysts predicted an increase of only 11%.

Alphabet, Google’s parent company, more than doubled its quarterly profit to $ 18.5 billion, driven by increased demand for online purchases during the pandemic, as well as the rise in popularity of streaming video, which has bolstered the tech giant’s ad business.

Microsoft announced that its revenues grew 21% to $ 46 billion, and net income was $ 16.5 billion. The company achieved such results in large part due to attracting new customers in Teams, cloud computing services, and video games.

However, experts say that such high growth rates of tech companies will soon begin to slow down. Gene Munster, the Managing Partner at technology research venture capital firm Loup Ventures, said: Investors believe that the good times will soon be over. At the heart of today’s sale is the issue of capacity sustainability. The numbers are so impressive that payouts are getting complicated and investors find it hard to believe that the epic growth will continue.

Despite the record results, investors are concerned about whether tech companies will be able to maintain last year’s gains. Microsoft shares fell after the gaming business was unable to achieve the same rapid pace of development as in 2020. Apple shares fell more than 2% after CEO Tim Cook warned that the company’s growth rate may not be sustained: This quarter, a sense of optimism is growing among consumers in the United States and around the world, instilling new hope for a better future and all that innovation can do. But, as the past 18 months have shown so many times, progress is not guaranteed.

Backed by the iPhone 12 lineup and 5G developments, investors were looking forward to big successes from Apple in 2021. However, the company has surpassed even the highest expectations by taking advantage of two benefits: the increased demand for laptops and iPads from workers and students stuck at home during the pandemic, and the release of an iPhone with features that, for the first time in three years, users perceived as worthy of updating their devices.

From April to June, iPhone sales rose 50% to $ 39.6 billion from the same period last year. Analysts predict that Apple’s total smartphone revenue in 2021 will grow by 36% compared to 2020, and will remain roughly the same in 2022. And in 2023, they expect a slight decrease in performance.

Apple has been able to avoid major disruptions due to the processor shortage that is now shaking the tech and automotive industries. But in April, the company warned that the drop in third-quarter sales compared to the second quarter would be greater than usual.

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