Apple starts 2021 strong with $89.6 billion in revenue

Apple’s steady stream of hardware upgrades and new services launched throughout the pandemic has held the company in good stead going into 2021.

The company on Wednesday reported revenues of $89.6 billion and a profit of $23.6 billion for the three months ending March 27, blowing past analyst forecasts. Apple shares surged more than 3% after-hours following the report.

iPhone sales were at nearly $48 billion, a 65% increase over the same quarter last year, as consumers continued shelling out the big bucks to upgrade to Apple’s first 5G smartphone lineup. The company’s overall product sales were $72.6 billion, buoyed by the launch of new iPads, the Apple Watch Series 6 and an updated range of MacBooks with Apple’s in-house silicon chips.

Apple’s services revenue jumped around 27% to $16.9 billion, as new software products such as its Fitness+ program and its Apple One subscription bundle continued to gain traction.

The company unveiled several products and services at its “Spring Loaded” event last week, including a new lineup of iMac desktop computers, a long-rumored Bluetooth tracking device called AirTag, a podcast subscription service and a purple version of its iPhone 12.

Earlier this week, the company said it is doubling down on its US manufacturing and corporate presence with an additional $80 billion investment.

At the same time, Apple is facing several pressures from regulators and other tech companies. The iPhone maker is locked in a heated dispute with Silicon Valley peer Facebook over its new privacy requirements that threaten the social media company’s core advertising business, as well as a legal battle over the App Store with Epic Games, the company behind popular video game Fortnite.

Apple’s App Store is also under scrutiny from US lawmakers over antitrust concerns.