Apple earnings top Wall Street forecasts while iPhone, China sales fall short

Key Points

  • Apple reported fiscal Q1 earnings, beating expectations on EPS and revenue but falling short on iPhone sales.
  • Greater China sales were lower than expected, continuing a trend of declining sales in the region.
  • Apple's Services business met expectations, while iPhone market share slightly declined despite AI push.

Summary

Apple Inc. reported its fiscal first quarter earnings, surpassing Wall Street's expectations for earnings per share and total revenue, but it fell short on iPhone sales. The company's revenue was $124.3 billion with an EPS of $2.40, against expectations of $124.1 billion and $2.35 respectively. However, iPhone sales were $69.1 billion, below the anticipated $71 billion, and down from last year's $69.7 billion. Sales in Greater China were particularly disappointing at $18.5 billion, against expectations of $21.5 billion, reflecting ongoing challenges in this key market. Despite these setbacks, Apple's Services segment performed as expected, generating $26.3 billion. The company has been pushing AI enhancements with its Apple Intelligence updates, aiming to boost consumer interest in the upcoming iPhone 16 line. However, analysts are skeptical about the impact of these updates on sales. Apple plans to release new products like an entry-level iPhone SE, iPads, and MacBook Airs in the coming months. Despite these efforts, Apple's stock performance has been moderate compared to other tech giants, with a 24% increase over the last year.

yahoo
January 31, 2025
Stocks
Read article

Related news