The 2021 first quarter results for Apple and Facebook show growth above analysts’ projections. The two tech giants recorded increased earnings that once again defied the pandemic, thanks to iPhone 12 sales and increased ad revenue.
Apple reported a profit of $23.6 billion in its second quarter, up twofold from a year ago, on record sales of $89.6 billion. The iPhone maker’s sales were up 53.7% jump from the same quarter last year, exceeding the $77.4 billion expected by analysts.
Net earnings were $1.40 per share, also beating the consensus analyst expectation of 99 cents per share.
iPhone sales totaled $47.9 billion, accounting for 53% of Apple’s total revenue, far surpassing the $29 billion reported in the first quarter of 2020 and the $41.7 billion predicted by Wall Street analysts.
The growth has been attributed mainly to the iPhone 12 series, Apple’s first with 5G cellular technology, prompting more people than usual to replace their devices.
Nevertheless, Apple reported strong growth across all its segments.
Revenue from services like iTunes and the App Store grew 27% to $16.9 billion, and sales of Mac computers, iPads and accessories like AirPods and watches also increased from last year. IPhone sales rose 66%, Macs were up 70%, while iPad sales jumped 79%.
Apple is boosting both dividends and buybacks. The company said Wednesday it will increase its share buyback program by $90 billion. The company repurchased $43 billion in the first half of the year and $72 billion in fiscal 2020.
“Success was broadly distributed across our product categories,” Apple CEO Tim Cook said in a Wednesday evening conference call.
Also, Facebook got on the profit page with a revenue growth that thrashed previous records. The social media giant reported that revenue rose 48% to $26 billion, helping nearly double its net income to $9.5 billion. That’s a significant increase from the 33% growth the company recorded in the fourth quarter. The growth has been fueled by strong demand that helped stoke both robust price increases and more ads, as the world adapts to the digital life.
Facebook daily active users (DAUs), were 1.88 billion on average for March 2021, an increase of 8% year-over-year.
Facebook monthly active users (MAUs), were 2.85 billion as of March 31, 2021, an increase of 10% year-over-year. Family daily active people (DAP), was 2.72 billion on average for March 2021, an increase of 15% year-over-year.
Family monthly active people (MAP), was 3.45 billion as of March 31, 2021, an increase of 15% year-over-year.
Capital expenditures, including principal payments on finance leases, were $4.42 billion for the first quarter of 2021.
Cash and cash equivalents and marketable securities were $64.22 billion as of March 31, 2021. Headcount was 60,654 as of March 31, 2021, an increase of 26% year-over-year.
“We had a strong quarter as we helped people stay connected and businesses grow,” said Mark Zuckerberg, Facebook founder and CEO. “We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy.”
The social media company said the strength of its advertising revenue growth in the first quarter of 2021, was driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads delivered.
Facebook said it expects second quarter 2021 year-over-year total revenue growth to remain stable or modestly accelerate relative to the growth rate in the first quarter of 2021 as it lap slower growth related to the pandemic during the second quarter of 2020.