Apple profits surge with full of “Optimism”

An increase in iPhone sales, especially in China, has led to a doubling of profits at Apple since the start of the pandemic.

The results reflected “optimism” about the days ahead, Apple’s boss said.

Rival tech firm Facebook also recorded a substantial revenues and profits.

However, the social media giant warned Apple’s latest software release could undermine its prospects later in the year.

Apple has noted sales of its phones, apps and other devices hike throughout the pandemic, as consumers spent more time working, shopping and seeking entertainment online.

Customers kept on upgrading Apple’s new 5G phones which were rolled out last year, and also bought Mac computers and iPads to tackle working and studying from home, the firm said.

Fitness and music apps also recorded a lockdown boost.

Sales to China nearly doubled, driving overall revenues for the first three months of this year of $89.6bn (£64.2bn), more than 50% up compared to a year earlier.

Profit was $23.6bn, up from $11.3bn for the same period previous year.

“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said chief executive Tim Cook.

Facebook, which depends on sales of advertising rather than consumer electronics, also recorded bumper revenues and profits in the first three months of the year.

The time spent by consumers at home, and the spending power that shifted online, converted into revenues of $26.17bn, exceeding analysts’ predictions. Profits recorded also higher than expected at $9.5bn.

Facebook said in coming months it expected revenue to be stable or grow moderately, and admitted a new feature released this week by Apple – an option for users to prevent apps from collecting user data – could “significantly” hurt its business.

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