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    Apple Inc. (AAPL) stock rises in Pre-Market today: Why is it so?

    By staff

    Apr 29,2021

    4:53 AM UTC

    Apple Inc. (AAPL) announced its blockbuster second-quarter earnings results after which the AAPL stock price saw a surge of 2.70% to reach $137.19 a share at the time of this writing. AAPL stock was down by 0.60% at the previous closing. Let’s have a look at current scenarios.

    AAPL stock second-quarter results:

    AAPL stock has recorded tremendous growth in the second quarter of 2021 and has beaten the analysts’ expectations on the top and bottom line.AAPL stock generated $89.58 billion in revenue surpassing the $77.3 billion expected revenue with a whopping increase of 54% year over year. Earnings per share were $1.40 while the expected EPS was $0.99.Revenue generated from iPhone and iPad reached  $47.9 billion and $7.8 billion respectively while the estimated revenue for both former and later was $41.5 billion and $5.6 billion, respectively. Revenue generated from MAC products surpassed the estimate of $6.8 billion to reach $9.1 billion.

    Why AAPL stock showed tremendous growth?

    AAPL stock posted strong hardware sales in the second quarter of 2021. Apple stock recorded huge revenue from the sales of its iPhone 12 launched in September 2020. Being the first iPhone to support the 5G technology proved to be a massive success for the AAPL stock so far. Furthermore, the notion of remote working or learning and work from home following the deadly pandemic has resulted in the huge sales of iPad and Mac of the Apple stock.

    Global Chip Shortage May Hit Apple:

    Due to the increase in the demand for electronic products, giant automakers and tech companies around the globe are facing the problem of the semiconductor chip shortage in the production of new products.AAPL Chief Financial Officer Luca Maestri has warned that the chip shortage is suppressing the sales of iPads and Macs.These both products have greatly contributed to the massive revenue from sales during the lockdown period. Maestri pointed to the decrease of $3 billion to $4 billion in revenue in the third quarter of 2021 due to chip shortage.

    Dividend Announcement:

    Apple’s board of directors has announced the cash dividend of $0.22 per share of its common stock which represents an increase of 7 percent. The shareholders having the record of closing the business on May 10 will be applicable to get dividends on May 13, 2021.


    Investors are responding to the second-quarter earnings report by the Apple stock as it showed massive growth in the sales revenue from its various products in the reported quarter.iPhone 12 along with iPads and Macs is the major success of the Apple stock. The semiconductor chip shortage which seems to last till 2022 is the only fear for the tech giant so far. In a nutshell, investors need to analyze all the pros and cons of investing in AAPL stock.

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