Apple Could Report Its First $100 Billion Quarter

January 25, 2021
346 Views

Apple Inc. (NASDAQ: AAPL) is preparing for its quarterly earnings call this Wednesday, and analysts believe that there will be an impressive announcement. According to the Wall Street consensus, the technology giant and maker of the iPhone will report its highest quarterly revenue figure ever.

A Record Sales Quarter for Apple?

Despite the pandemic, the popularity of the Apple iPhone 12 has been increasing. Priced at a premium and featuring advanced technology, the iPhone 12 doesn’t seem like a device that would perform well during a global economic downturn and health emergency.

However, the popularity of the iPhone has been surging. Apple has released new models with 5G support, which has driven people to upgrade to take advantage of increased speeds and lower data latency in major metropolitan areas.

Morningstar, a leading analyst firm, said late last year that iPhone revenue was expected to grow in December due to the iPhone 12. The firm also noted that Apple’s revenue in other areas was expected to generate double-digit growth.

This is consistent with what we saw in the previous quarter’s earnings report. Apple had strong growth in its iMac, MacBook, and service divisions. iTunes and Apple TV+ were significant areas of growth.

But how big will Apple’s quarter be? According to the consensus, Apple will report revenue of more than $100 billion for the first time. This would put the company in exclusive territory. Only the largest consumer-facing companies, such as Walmart, have had $100 billion quarters in the past.

Amazon, a direct competitor to Apple in some areas, is also expected to report a quarter with more than $100 billion in revenue.

What Would a $100 Billion Quarter Do to Apple’s Stock

If Apple’s iPhone sales and growth in other segments do indeed push quarterly revenue above $100 billion for the first time, it could lead to strong growth in the stock. This growth would likely be consistent with high-end analyst targets. The highest estimate reported by FactSet is $160 per share.

Investors are bullish on Apple this year, with the stock gaining 4.81% as of Monday morning. Investors looking to leverage this stock to its full potential should consider waiting until Wednesday’s earnings call to see the official result and judge how far it could climb.

With many smaller companies struggling during the Coronavirus Pandemic, Apple could be a good technology and consumer services pick for the months ahead.

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
548 views
Economy
548 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
489 views
Economy
489 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
555 views
Economy
555 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…