Apple (AAPL) reported its fiscal first quarter earnings after the bell on Thursday, beating expectations on both the top and bottom lines. However, the company’s iPhone sales fell short of Wall Street’s anticipations. Sales from Apple’s Greater China region were also lower than expected.
The stock surged over 3% in pre-market trading on Friday following the release. This comes after several analysts downgraded Apple’s stock last week due to concerns about sluggish iPhone sales.
For the quarter, Apple reported $2.40 per share earnings and revenue of $124.3 billion, exceeding analyst expectations of $2.35 per share and $124.1 billion in revenue. The company’s iPhone segment brought in $69.1 billion, lower than the expected $71 billion.
Apple’s Services business generated $26.3 billion in revenue, matching Wall Street’s expectations. However, Greater China sales fell to $18.5 billion, missing estimates of $21.5 billion. This marks the sixth consecutive quarter where Apple’s sales in China have declined.
Despite this, Apple is set to release new products, including a new iPhone SE and iPads and MacBook Airs, which could boost its sales. The company has also started releasing its AI updates, aimed at enticing consumers to upgrade to its latest smartphones.
Shares of Apple are up 24% over the last year, comparable to Google’s growth. Nvidia, Meta, and Microsoft have seen significant increases in their shares as well.
Source: https://finance.yahoo.com/news/apple-earnings-top-wall-street-forecasts-while-iphone-china-sales-fall-short-213001552.html