On January 27, Apple will disclose the results of its critical first fiscal quarter for 2021, that spans the 2020 holiday season. Here's what factors impact this quarter, which is expected to be a record-breaking one.
The first financial results of the year is always Apple's biggest in terms of revenue, partly due to it covering the holiday sales period, but mostly because it also contains the first near-full quarter of sales for Apple's annual flagship iPhone refresh. As with the previous few quarters, Q1 2021 will be an unusual one for the company, as the ongoing COVID-19 pandemic may have a direct effect on sales.
The iPhones may be the main attraction, but there's also a significant number of other products that were launched shortly before the quarter started or were released during the period, as part of Apple's trio of special events. The Apple Watch Series 6, Apple Watch SE, and 2020 iPad will all have been available for the entirety of the quarter, after a mid-September announcement and only a few days of availability in the previous quarter.
The bulk of conversations surrounding the results will revolve around the iPhone. Apple CEO Tim Cook and CFO Luca Maestri are likely to highlight data high-points in its other product launches, or be prompted to do so by analysts in the quarterly conference call.
Like other quarters in 2020, Apple's Q4 2020 results did not include a forecast to investors of what to expect for Q1 2021. This is due to the quickly-changing and challenging trading conditions prompted by the COVID-19 pandemic, and it is likely that Apple will decline to forecast for the Q2 2021 quarter either.
For reference, Apple's first quarter of 2020 saw $91.8 billion in revenue, representing a year-on-year increase of 9%. Revenue from iPhone grew to $56 billion from $52 billion one year prior, Services saw 16.9% year-on-year growth to $12.7 billion, and Wearables, Home, and Accessories swelled 37% YoY to $10.1 billion.
At the same time, iPad revenue dropped 11.2% to $5.98 billion, and Mac stayed relatively flat at 0.2% growth and $7.2 billion. Both are likely to see increases in revenue for the Q1 2021 results given the Fall 2021 release of new iPad products, as well as Apple Silicon Macs in November.
New hardware release growth in Mac and iPad is on top of coronavirus-induced year-over-year growth in the Q3 and Q4 results for 2020. The Mac segment increased 21.6% in Q3 2020 then 29.2% in Q4. Meanwhile, iPad's Q3 was up 31% YoY, and a stellar 46% rise was seen in Q4.
Given the ongoing presence of social distancing initiatives, including working from home, it seems very plausible for both iPad and Mac to continue to see growth during the period. A wane is inevitable as the coronavirus-related purchase pattern slows, but given the ongoing pandemic, plus the holiday quarter, a dip is improbable for the January 27 results.
AppleInsider will offer full coverage of the earnings call on Wednesday, Jan. 27, starting at 2 p.m. Pacific, 5 p.m. Eastern. As analysts chime in on what they expect, we will add to this post, summarizing their predictions.
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January 19, 2021 at 07:01PM
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What to expect from Apple's Q1 2021 earnings on Jan. 27 - AppleInsider
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