Apple sales have hit another record, as families loaded up on the firm’s latest phones, laptops and gadgets during the Christmas period.
Sales in the last three months of 2020 hit more than $111bn (£81bn) – up 21% from the prior year. The gains come as the pandemic pushes more activity online, fuelling demand for new technology. Apple now counts more than 1.65 billion active devices globally, including more than 1 billion iPhones. Apple’s gains follow the release of its new iPhone 12 suite of phones, which executives said had convinced a record number of people to switch to the company or upgrade from older models.
The firm said growth in China – where the pandemic has already loosened its grip on the economy – was particularly strong, helped in part by demand for phones compatible with new 5G networks. Sales in the firm’s greater China region, which includes Hong Kong and Taiwan, jumped 57%. In Europe, sales roles 17%, and they rose 11% in the Americas. “The products are doing very well all around the world,” said Luca Maestri, Apple’s chief financial officer. “As we look ahead into the March quarter, we’ve very optimistic.” Analyst Dan Ives of Wedbush Securities said he thought the firm was just at the beginning of a “super-cycle” as Apple devotees finally trade in old phones, coinciding with upgrades to telecommunications networks.
“With 5G now in the cards and roughly 40% of its ‘golden jewel’ iPhone installed base not upgrading their phones in the last 3.5 years, Apple chief, Tim Cook & Co have the stage set for a renaissance of growth,” he wrote. Big Tech is having an exceptionally lucrative pandemic, it’s hard not to be wowed by some of these figures. That Apple recorded more than $100bn in sales in just three months is simply astonishing. Facebook figures are also well up on where they were last year, as other companies have struggled to survive, Big Tech has flourished. There are other reasons for some of these incredible figures. Certainly it seems iPhone enthusiasts were holding out for the new 5G enabled iPhone12, but it’s not just Apple and Facebook, all of the massive tech companies are having a bumper year.
Covid-19 means people are spending more time indoors – buying things online, watching things online and chatting online. Perhaps then it’s no surprise that these companies are posting record breaking figures, but others point to these figures as yet more evidence that Big Tech has become too big to fail. These figures are impressive. But they also attract the attention of politicians who are increasingly asking difficult questions – like are these tech mega companies operating in a market that is fair and with enough competition? Apple said profits in the quarter reached nearly $28.8bn, up 29% compared with the same quarter last year. The gains seen by technology firms like Apple contrast with losses hitting many other economic sectors, as the virus restricts activity and keeps shoppers at home.
Other tech firms, such as Microsoft and Facebook, have also enjoyed strong growth. Facebook on Wednesday said increased online shopping during the pandemic helped lift ad revenue in the quarter by 30%. The number of people active on its apps – which also include WhatsApp and Instagram – also rose to 2.6 billion daily, up 15% compared to 2019. It said ad spending could slow as the Covid-19 crisis relaxes and shopper appetite returns for services like travel rather than products. It also warned that plans by Apple to change how it shares user data could weigh on growth.