Apple has delivered solid quarterly numbers, exceeding expectations on iPhone sales and China growth. The company’s fiscal 2025 second-quarter revenue rose 5% year over year to $95.4 billion, driven by strong demand for iPhones. iPhone sales increased 2% to $46.84 billion, beating estimates by roughly $1 billion.
In China, Apple’s largest market, revenue of $16 billion was also light, but the company’s CEO Tim Cook said a survey showed iPhones were the top-selling device in urban China. This could ease concerns about U.S.-China tensions affecting sales.
However, Apple did miss services revenue estimates by $0.05 billion, and this disappointed investors. The stock dropped 4% in after-hours trading. Despite this, Apple’s overall performance was strong, and Cook expressed confidence in the company’s future prospects.
In the June quarter, management expects growth of low-single digits to mid-single digits on a percentage basis. This is lower than expected but still positive. The company also plans to invest $500 billion in the U.S. over the next four years, with new facilities and supply chain investments.
Overall, Apple’s dominant hardware and growing services businesses provide a deep competitive moat, and management’s net cash-neutral strategy provides confidence that free cash flow will continue to fund dividends and buybacks.
Source: https://www.cnbc.com/2025/05/01/apple-is-getting-punished-for-one-thing-it-did-not-deliver-this-quarter.html