Apple Q1 - $1 Billion a Day in Sales

Apple results are always very exciting. It is a polarising company when it comes to analysts. Fortunately, we have been on the long side of the argument. Since 2006 the share is up 3 000%, I would say that the longs have been right so far?

Q1 is Apple's big quarter because it includes black Friday and Christmas. They smashed their revenue record by $7bn with $91.8bn in sales. Someone on Twitter pointed out that Apple made sales of over $1bn a day. Just incredible.

Tim Cook said that the iPhone 11 has been a smash hit. That has been a key driver of the recent share price surge. Services came in at a record $12.7bn and wearables (Watch and AirPods) have seen phenomenal growth. More importantly, their active installed base of devices has reached 1.5bn. That bodes very well for the future of their services business.

Net income of $22.2bn was also a record. In the quarter the company generated $30.5bn of free cash flow. That could pay off Eskom's debt in one swoop. But no, they are rather returning it to shareholders (fair enough). In the quarter they bought back $20bn worth of shares and are paying $3.5bn in dividends.

It is very easy to write about such phenomenal results. But even with all this good news, the stock trades at 22 times next years earnings. That is cheaper than almost every other large tech business out there. This stock should be a heavy weighting in every portfolio whether you are 8 or 80 years old.