Top Apple Stock news: Apple’s Financials: How Much Money Made Apple In Q1 2021?
Top Apple Stock News: Apple reported a net income of $28.8 billion on revenue of $111.4 billion in the first quarter of fiscal 2021. Both net income and revenue were up from the year-ago quarter. Net profit increased by 29.3%, while revenue grew by 21.4%. Revenue from the grocery business grew 21.0% year-on-year, accounting for about 86% of Apple’s total revenue. Among iPhone products, 59% of total revenue came from iPhone, 8% from Mac, 8% from iPad, and 12% from wearable, household, and accessories. Services revenue grew 24.0% year-on-year to 14% of Apple’s total revenue.
Services continued to grow in the reporting quarter. Apple set a quarterly record for the App Store, Cloud, Music, Ads, AppleCare, and Payments. Apple TV +, Apple Arcade, Apple News +, Apple Card, Apple Fitness +, and Apple One also contributed to overall growth. Apple currently has over 620 million paying subscribers in its portfolio of services, up 35 million from the previous year and up 140 million.
The Partnership Prospects With Kia Motors & Hyundai
Analyst Ming-Chi Kuo said Apple(AAPL) would work closely with Hyundai on an initial “Apple Car” model that could lead to new vehicles in association with General Motors and European manufacturer PSA. The news pushed Hyundai stock(HYMTF) up nearly 20% on the day. It is also worth noting that Kia Motors Corp.(000270.KS) jumped 14.5% after reporting that Apple Inc. invests $ 3.6 billion in cooperation with this company.
The first “Apple Car” will be built on the E-GMP electric vehicle platform, with Hyundai Mobis taking the lead in component development and manufacturing. At the same time, Hyundai subsidiary Kia will manufacture it in the United States. Unveiled in December, the E-GMP platform is a particular battery electric vehicle (BEV) platform that consists of two motors, a five-link rear suspension, an integrated drive axle, battery cells, a charging system, and other chassis components.
Thus, Apple will outsource the production and assembly of parts to reputable automakers since electric cars contain 40-50 times more parts than smartphones. Therefore, Apple will have to rely on the automaker’s existing resources to create a functional car in time. Apple’s electric car is expected to compete with electric vehicles of such companies as Tesla, Daimler AG, and Volkswagen AG.
Apple Production Is Ramping Up Outside Of China
Apple is ramping up production of iPhones, Macs, and other goods outside of China – mainly in Southeast Asia. It happens from one side, because the new Biden administration in the United States is, so far, leaving tariffs on Chinese goods imposed by the Trump administration in place. On the other hand, rising labor costs spur other companies to seek lower-cost manufacturing locales. iPad production will begin in Vietnam in mid-2021. In Vietnam, Apple is mobilizing suppliers to increase production capacity for the latest HomePod mini, a low-cost model line of smart voice-activated speakers. iPhone manufacturing in India is the second-largest durable system manufacturing base and plans to begin producing the latest iPhone 12 series – the first 5G enterprise smartphones in the first quarter of 2021.
Many tech giants are looking to reduce their dependence on China as labor costs rise there, coupled with prolonged trade tensions with the USA. Moreover, supply chain disruptions caused by the 2020 pandemic increase the risk of heavy reliance on one country. The supply chain encouraged technology providers to leave China, a central industrial hub for large technology companies.