Apple Reports Record Profit Despite iPhone and China Sales Challenges

Apple profit tops Wall Street target even as iPhone, China sales fall short

(Reuters) - Apple beat Wall Street's quarterly profit estimates on Thursday, but iPhone sales and China revenue for the holiday quarter were weak due to stiff Chinese competition and a slow rollout of artificial intelligence features. The company's overall sales and profits were boosted by stronger-than-expected sales of iPads and Macs, where new chips helped persuade customers to upgrade. The lack of AI selling points contributed to iPhone sales that dropped slightly to $69.14 billion, compared with the $71.03 billion that analysts were expecting, according to LSEG data. Greater China sales dropped to $18.51 billion, compared with $20.82 billion a year earlier and below the $21.33 billion that a Visible Alpha survey of five analysts expected. Total sales of $124.30 billion for the fiscal first quarter ended Dec. 28 inched past Wall Street's target of $124.12 billion, according to LSEG, while earnings per share of $2.40 comfortably beat the consensus target of $2.35. The iPhone maker has positioned AI as a set of new capabilities and features such as drafting emails and transcribing phone calls, but the company is rolling the features out over time and has not yet secured a local partner in China to release them. In an interview, Apple CEO Tim Cook said AI features, called Apple Intelligence, are driving sales of the company's new devices. "We saw that in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Cook said. While Cook said Apple Intelligence is coming in new languages such as French and German in April, he said there is no timeline for when it will become available in China. "We continue to work with the regulators and will release it as soon as we can," Cook said. Cook told Reuters that about half of Apple's 11% decline in China revenues was attributable to changes in how much inventory the company's resellers held. IPAD, MAC SALES IMPRESS Mac sales benefited from a new lineup of Mac Minis, iMacs and MacBook Pros with a new M4 chip. Apple Intelligence features are more widely available on Apple's Macs and iPads because their larger size means they have more powerful chips. "The silicon makes it perfect for running AI workloads, and so I assume that that's a very key compelling reason for people to upgrade," Cook said. Apple's Mac and iPad sales hit $8.99 billion and $8.09 billion respectively, above estimates of $7.96 billion and $7.32 billion, according to LSEG data. Apple said its services business, which includes iCloud storage and its streaming music and video services, hit $26.34 billion in sales, up 13.9% from the previous year and above estimates of $26.09 billion, according to LSEG data. The firm's wearables segment, which includes the Apple Watch and AirPods lines, had $11.75 billion in sales, compared with analyst expectations of $12.01 billion, according to LSEG data. (Reporting by Stephen Nellis in San Francisco; Editing by Rod Nickel)

Apple Profit Tops Wall Street Target Even as IPhone, China Sales Fall Short

(Reuters) -Apple beat Wall Street's quarterly profit estimates on Thursday, but iPhone sales and China revenue for the holiday quarter were weak due to stiff Chinese competition and a slow rollout of artificial intelligence features. The company's overall sales and profits were boosted by stronger-than-expected sales of iPads and Macs, where new chips helped persuade customers to upgrade. The lack of AI selling points contributed to iPhone sales that dropped slightly to $69.14 billion, compared with the $71.03 billion that analysts were expecting, according to LSEG data. Greater China sales dropped to $18.51 billion, compared with $20.82 billion a year earlier and below the $21.33 billion that a Visible Alpha survey of five analysts expected. Shares rose 0.5% in after-market trading. Total sales of $124.30 billion for the fiscal first quarter ended Dec. 28 inched past Wall Street's target of $124.12 billion, according to LSEG, while earnings per share of $2.40 comfortably beat the consensus target of $2.35. The iPhone maker has positioned AI as a set of new capabilities and features such as drafting emails and transcribing phone calls, but the company is rolling the features out over time and has not yet secured a local partner in China to release them. In an interview, Apple CEO Tim Cook said AI features, called Apple Intelligence, are driving sales of the company's new devices. "We saw that in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Cook said. While Cook said Apple Intelligence is coming in new languages such as French and German in April, he said there is no timeline for when it will become available in China. "We continue to work with the regulators and will release it as soon as we can," Cook said. Cook told Reuters that about half of Apple's 11% decline in China revenues was attributable to changes in how much inventory the company's resellers held. Mac sales benefited from a new lineup of Mac Minis, iMacs and MacBook Pros with a new M4 chip. Apple Intelligence features are more widely available on Apple's Macs and iPads because their larger size means they have more powerful chips. "The silicon makes it perfect for running AI workloads, and so I assume that that's a very key compelling reason for people to upgrade," Cook said. Apple's Mac and iPad sales hit $8.99 billion and $8.09 billion respectively, above estimates of $7.96 billion and $7.32 billion, according to LSEG data. Apple said its services business, which includes iCloud storage and its streaming music and video services, hit $26.34 billion in sales, up 13.9% from the previous year and above estimates of $26.09 billion, according to LSEG data. The firm's wearables segment, which includes the Apple Watch and AirPods lines, had $11.75 billion in sales, compared with analyst expectations of $12.01 billion, according to LSEG data. (Reporting by Stephen Nellis in San Francisco; Editing by Rod Nickel)

Apple profit climbs but sales miss expectations

Apple on Thursday reported its revenue was a whopping $124.3 billion in the year-end holiday quarter, but sales growth fell shy of market expectations as the iPhone faces stiff competition, particularly in China. Revenue growth was powered by Apple's service and digital content unit, with iPhone sales slipping in markets like mainland China where they tallied $18.5 billion.Apple on Thursday reported its revenue was a whopping $124.3 billion in the year-end holiday quarter, but sales growth fell shy of market expectations as the iPhone faces stiff competition, particularly in China. Apple logged $36.3 billion in profit in what chief executive Tim Cook called its "best quarter ever." Revenue growth was powered by Apple's service and digital content unit, with iPhone sales slipping in markets like mainland China where they tallied $18.5 billion. Overall iPhone sales in the quarter were $69.1 billion, about a half-billion less than it took in for handsets in the same period a year earlier, according to an earnings release. "Our record revenue and strong operating margins drove (earnings per share) to a new all-time record with double-digit growth," said Apple chief financial officer Kevan Parekh. "We are also pleased that our installed base of active devices has reached a new all-time high across all products and geographic segments." In the quarter, Apple's services segment -- which includes Apple Music, iCloud, the App Store, and Apple TV+ -- reported revenue of $26.3 billion, compared to $23.1 billion in the same period a year earlier. Apple shares slipped before rising nearly three percent to $244.67 in after-market trades. The Americas remained Apple's largest market with $56.2 billion in revenue, while Europe showed strong growth at $33.9 billion. "On the Apple intelligence side, we have not rolled out in China," Cook said on an earnings call. "We did see better results in the markets that we had rolled Apple Intelligence out in than markets we hadn't; and, of course, it's the most competitive market in the world." Investors are eyeing demand for new iPhones with artificial intelligence features, especially after Apple stumbled with the technology. Apple Intelligence is a new suite of software features for all devices that was announced at the company's annual developers conference, where it also announced a partnership with ChatGPT-maker OpenAI. In the short-term, the new powers include AI-infused image editing, translation, and small, creative touches in messaging, but not more ambitious breakthroughs promised by other AI players, such as OpenAI or Google. "While the company's cautious approach to AI rollout has drawn criticism, robust services growth and ecosystem expansion are providing crucial momentum to help ease its continued iPhone struggles in China," said Emarketer analyst Jacob Bourne. "However, Apple needs to accelerate its Apple Intelligence deployment and be a bit more aggressive in emerging areas like smart glasses development to maintain an innovative edge." Headline trouble Apple pushed out a software update in mid-January which disabled news headlines and summaries generated using AI that were lambasted for getting facts wrong. Apple's decision to temporarily disable the recently launched AI feature came after the BBC and other news organizations complained that users were getting mistake-riddled or outright wrong headlines or news summary alerts. The company hopes that customers are attracted to buy the latest iPhone models by its new AI powers. Along with Apple, other tech giants like Google, Microsoft and Amazon are convinced that generative AI's powers are the next chapter of computing and are boosting spending so as not to be left behind. Apple lost its status as the best selling smartphone brand in the crucial Chinese market last year after a pair of local rivals surpassed it with surging shipments, according to industry data provider Canalys. "Intense competition has led to a constantly shifting landscape," said Amber Liu, Research Manager at Canalys.

Apple reports record quarterly revenue despite iPhone sales miss - SiliconANGLE

Apple reports record quarterly revenue despite iPhone sales miss Apple Inc. has just delivered its "best quarter ever," with record-breaking revenue helping to boost its stock even as iPhone sales missed expectations. That, added to a positive forecast for the coming quarter, sent the company's stock higher in extended trading. The company reported fiscal 2025 first-quarter earnings before certain costs such as stock compensation of $2.40 per share, beating Wall Street's $2.35-per-share forecast. Revenue for the period inched up 4%, to $124.3 billion, also surpassing the Street's target of $124.12 billion. They were strong numbers and they helped Apple to deliver an overall net profit in the quarter of $36.33 billion, rising from the $33.91 billion profit it posted one year earlier. Looking to the current quarter, Apple declined to provide official guidance but said it's expecting revenue growth in the low- to mid-single digits from the same period last year. In addition, the company said it expects to see growth in the "low double digits" for its Services division. However, the strong dollar is likely to drag on its overall sales by about 2.5%, officials said. After accounting for the currency headwinds, it's expecting an overall growth rate of around 6%. Wall Street analysts are expecting the company to report earnings of $1.66 per share on revenue of $95.46 billion in the second quarter, which suggests slightly slower growth of around 4%. Apple's stock rose just over 3% in late trading, suggesting that investors were pleased with the results, even though sales of the company's flagship iPhone declined slightly on a year-over-year basis, missing expectations. The company said iPhone generated $69.14 billion in sales, below the Street's target of $71.03 billion. The quarter just gone was the first full quarter of iPhone 16 sales, the company's latest-generation device, which introduces new artificial intelligence features through the Apple Intelligence suite. It was the first time Apple has missed expectations on iPhone sales since the first quarter of fiscal 2023. Back then, the company said it had missed targets because of production issues in China, meaning it couldn't get enough iPhone 14 models into the hands of customers. This time around, Apple was impacted by significant weakness in the Greater China region, which includes mainland China, Hong Kong and Taiwan. Sales there fell 11.1%, to just $18.51 billion. In an interview with CNBC, Apple Chief Executive Tim Cook (pictured) explained that iPhone sales were stronger in English-speaking countries, of which only a handful can currently access the Apple Intelligence suite. The AI software isn't available at all in China. "We saw that in markets we had rolled out Apple Intelligence that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple Intelligence," Cook said. That suggests iPhone 16 sales might pick up in the coming months, for Cook added that the company will release Apple Intelligence in additional languages and markets in April, including a version of the software in simplified Chinese. According to Cook, sales in the Greater China were affected by a couple of factors. Besides Apple Intelligence being unavailable, there was a change in "channel inventory" that was responsible for about half of the overall decline there. Cook added that he believes iPhone sales are likely to be boosted in the current quarter, since the Chinese government has just issued a national subsidy that will stimulate economic activity. In the earnings report, Apple said it had a gross margin of 46.9%, which is the highest on record, surpassing the 46.6% margin that it delivered in its March 2024 quarter. Gross margin refers to the profit from each product sold after accounting for the cost of manufacturing and delivering those goods. Elsewhere in Apple's business, the company did a lot better. For instance, sales of Apple's iPad and Mac devices both showed healthy growth after struggling in the previous year's holiday quarter. Mac revenue was up 15% to $8.99 billion, easily surpassing the Street's target of $7.96 billion, while iPad sales reached $8.09 billion, also up 15% and ahead of the $7.32 billion forecast. Mac sales were boosted by the launch of several new devices in October, including the latest versions of the Mac Mini and MacBook Pro, and the all-new iMac computer. The company also debuted a new iPad Mini in the quarter. Cook said there was "significant excitement" about the new Mac lineup. The company also saw strength in its Services division, which is its biggest profit driver, accounting for subscriptions, warranties and licensing deals. The unit delivered $26.34 billion in revenue during the quarter, up 14% from a year earlier and just ahead of the Street's target of $26.09 billion. According to Cook, the company now counts more than 1 billion subscriptions for services such as iCloud and Apple TV+, as well as third-party applications that are sold via the Apple App Store. The Services business has become a key profit engine for Apple, which for years was widely considered to be a hardware company. For years, the company struggled to boost its gross margin above 38% to 39%, but that changed when Cook began putting more emphasis on subscription services. That helped push the company's gross margin to over 40% in early 2021, and it has continued to expand since then. Finally, the company's "other products" category, which encompasses wearables such as the Apple Watch, the Vision Pro virtual reality headset and audio devices such as AirPods and Beats headphones, saw sales fall 2% on an annual basis, to $11.75 billion, trailing the $12.01 billion target.

Apple profit climbs but sales miss expectations

SAN FRANCISCO (AFP) - Apple on Thursday reported its revenue was a whopping USD124.3 billion in the year-end holiday quarter, but sales growth fell shy of market expectations as the iPhone faces stiff competition, particularly in China. Apple logged USD36.3 billion in profit in what chief executive Tim Cook called its "best quarter ever." Revenue growth was powered by Apple's service and digital content unit, with iPhone sales slipping in markets like mainland China where they tallied USD18.5 billion. Overall iPhone sales in the quarter were USD69.1 billion, about a half-billion less than it took in for handsets in the same period a year earlier, according to an earnings release. "Our record revenue and strong operating margins drove (earnings per share) to a new all-time record with double-digit growth," said Apple chief financial officer Kevan Parekh. "We are also pleased that our installed base of active devices has reached a new all-time high across all products and geographic segments." In the quarter, Apple's services segment -- which includes Apple Music, iCloud, the App Store, and Apple TV+ -- reported revenue of USD26.3 billion, compared to USD23.1 billion in the same period a year earlier. Apple shares slipped before rising nearly three per cent to USD244.67 in after-market trades. The Americas remained Apple's largest market with USD56.2 billion in revenue, while Europe showed strong growth at USD33.9 billion. "On the Apple intelligence side, we have not rolled out in China," Cook said on an earnings call. "We did see better results in the markets that we had rolled Apple Intelligence out in than markets we hadn't; and, of course, it's the most competitive market in the world." Investors are eyeing demand for new iPhones with artificial intelligence features, especially after Apple stumbled with the technology. Apple Intelligence is a new suite of software features for all devices that was announced at the company's annual developers conference, where it also announced a partnership with ChatGPT-maker OpenAI. In the short-term, the new powers include AI-infused image editing, translation, and small, creative touches in messaging, but not more ambitious breakthroughs promised by other AI players, such as OpenAI or Google. "While the company's cautious approach to AI rollout has drawn criticism, robust services growth and ecosystem expansion are providing crucial momentum to help ease its continued iPhone struggles in China," said Emarketer analyst Jacob Bourne. "However, Apple needs to accelerate its Apple Intelligence deployment and be a bit more aggressive in emerging areas like smart glasses development to maintain an innovative edge."

Rampant Apple reports record quarterly revenue, despite iPhone sales miss - SiliconANGLE

Rampant Apple reports record quarterly revenue, despite iPhone sales miss Apple Inc. has just delivered its "best quarter ever", with record-breaking revenue helping to boost its stock even as iPhone sales missed expectations. That, added to a positive forecast for the coming quarter, sent the company's stock higher in extended trading. The company reported fiscal 2025 first quarter earnings before certain costs such as stock compensation of $2.40 per share, beating Wall Street's $2.35 per share forecast. Revenue for the period inched up 4% to $124.3 billion, also surpassing the Street's target, of $124.12 billion. They were strong numbers and they helped Apple to deliver an overall net profit in the quarter of $36.33 billion, rising from the $33.91 billion profit it posted one year earlier. Looking to the current quarter, Apple declined to provide official guidance but said it's expecting revenue growth in the low-to-mid-single digits compared to the same period last year. In addition, the company said it expects to see growth in the "low double digits" for its Services division. However, the strong dollar is likely to drag on its overall sales by about 2.5%, officials said. After accounting for the currency headwinds, it's expecting an overall growth rate of around 6%. Wall Street analysts are expecting the company to report earnings of $1.66 per share on revenue of $95.46 billion in the second quarter, which suggests slightly slower growth of around 4%. Apple's stock was up just over 3% in late trading, suggesting that investors were pleased with the results, even though sales of the company's flagship iPhone declined slightly on a year-over-year basis, missing expectations. The company said iPhone generated $69.14 billion in sales, below the Street's target of $71.03 billion. The quarter just gone was the first full quarter of iPhone 16 sales, the company's latest generation device which introduces new artificial intelligence features through the Apple Intelligence suite. It was the first time Apple has missed expectations on iPhone sales since the first quarter of fiscal 2023. Back then, the company said it had missed targets due to production issues in China meaning it couldn't get enough iPhone 14 models into the hands of customers. This time around, Apple was impacted by significant weakness in the Greater China region, which includes mainland China, Hong Kong and Taiwan. Sales there fell 11.1% to just $18.51 billion. In an interview with CNBC, Apple Chief Executive Tim Cook (pictured) explained that iPhone sales were stronger in English-speaking countries, of which only a handful can currently access the Apple Intelligence suite. The AI software isn't available at all in China. "We saw that in markets we had rolled out Apple Intelligence that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple Intelligence," Cook said. That suggests iPhone 16 sales might pick up in the coming months, for Cook added that the company will release Apple Intelligence in additional languages and markets in April, including a version of the software in simplified Chinese. According to Cook, sales in the Greater China were impacted due to a couple of factors. First, there was a change in "channel inventory" that was responsible for about half of the overall decline there. Second, the fact that Apple Intelligence is not yet available in China. Cook added that he believes iPhone sales are likely to be boosted in the current quarter as the Chinese government has just issued a national subsidy that will stimulate economic activity. In the earnings report, Apple said it had a gross margin of 46.9%, which is the highest on record, surpassing the 46.6% margin that it delivered in its March 2024 quarter. Gross margin refers to the profit from each product sold after accounting for the cost of manufacturing and delivering those goods. Elsewhere in Apple's business, the company did a lot better. For instance, sales of Apple's iPad and Mac devices both showed healthy growth after struggling in the previous year's holiday quarter. Mac revenue was up 15% to $8.99 billion, easily surpassing the Street's target of $7.96 billion, while iPad sales reached $8.09 billion, also up 15% and ahead of the $7.32 billion forecast. Mac sales were boosted by the launch of several new devices in October, including the latest versions of the Mac Mini and MacBook Pro, and the all-new iMac computer. The company also debuted a new iPad Mini in the quarter. Cook said there was "significant excitement" about the new Mac lineup. The company also saw strength in its Services division, which is its biggest profit driver, accounting for subscriptions, warranties and licensing deals. The unit delivered $26.34 billion in revenue during the quarter, up 14% from a year earlier and just ahead of the Street's target of $26.09 billion. According to Cook, the company now counts more than one billion subscriptions for services such as iCloud and Apple TV+, as well as third-party applications that are sold via the Apple App Store. The Services business has become a key profit engine for Apple, which for years was widely considered to be a hardware company. For years, the company struggled to boost its gross margin above 38%-39%, but that changed when Cook began putting more emphasis on subscription services. That helped push the company's gross margin to over 40% in early 2021, and it has continued to expand since then. Finally, the company's "other products" category, which encompasses wearables such as the Apple Watch, the Vision Pro virtual reality headset and audio devices like the AirPods and Beats headphones, saw sales fall 2% on an annual basis to $11.75 billion, trailing the $12.01 billion target.

Apple quarterly revenue increases, even as China sales decline 11% | TechCrunch

Apple's latest earnings were a mixed bag filled with slipping iPhone sales and countered by rising revenue. Reporting after the bell Thursday, the iPhone maker's overall revenue in the first quarter of 2025 beat Wall Street expectations, with a 4% bump to $124.3 billion over the same time last year. Apple reported net income of $36.33 billion, up 7.1% from $33.92 billion in the same year-ago period. The increase came even as the company missed iPhone estimates, while experiencing an 11.1% sales drop in China, down to $18.51 billion. It's the largest drop in this key region since a nearly 13% dip in Q1 2024. The world's largest smartphone market has proven increasingly difficult for the company, owing to more intense competition from domestic manufacturers, including Oppo and Vivo. Huawei, which saw a massive drop in sales as trade restrictions were imposed by the first Trump Administration, has since surged in its home country. In a conversation with CNBC, CEO Tim Cook placed some of the blame at the feet of Apple Intelligence -- which isn't currently available in China -- along with several other key markets. Apple's small model generative AI platform is, by far, the biggest selling point for the iPhone 15, which debuted late-last year. "During the December quarter, we saw that in markets where we had rolled out Apple intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence," Cook said. The CEO also pointed to channel inventory, which has restricted the availability of new hardware in the country. iPhone sales declined slightly year-over-year, in spite of the company's anticipation of an Apple Intelligence-driven boost. The platform experienced a slow roll out in iOS 18, with features arriving in waves. Some features, like news summaries, had a rocky launch, as well. Apple paused the feature to address an issue with surfacing incorrect information. Both Mac and iPad revenue grew by 15% for the quarter, thanks to the launch of a new iPad Mini, iMac, Mac Mini, and MacBook Pro. Services - which includes things like Apple TV+, Apple Music, and iCloud -- saw 14% growth for the quarter. Cook noted that Apple now boasts one billion subscriptions across its content offerings and third-party apps. Overall, analysts are greeting the news positively, as the company beat expectations in several key categories, despite headwinds. Earlier this week, Apple's late entry into the generative AI space also shielded the company, as the arrival of DeepSeek R1's platform resulted in a large buy off for companies like NVIDIA.

Apple CEO Tim Cook promises iPhone sales will rebound after AI...

Apple shares rose in after-market trading on Thursday after the company forecast higher sales than Wall Street expected, a sign the company expects iPhone sales to recover as it rolls out artificial intelligence features. Apple executives said they expect sales for the current quarter to rise in the low- to mid-single digit range. After accounting for a 2.5 percentage point impact from foreign exchange rates, that forecast appeared to beat the 5% rise to $95.3 billion expected by analysts for the quarter that will end in March, according to data from LSEG. Apple shares rose more than 2% after the forecast. For the just-ended fiscal first quarter, Apple beat Wall Street's quarterly profit estimates, but iPhone sales and China revenue for the holiday quarter were weak due to stiff Chinese competition and a slow rollout of artificial intelligence features. The company's overall sales and profits were boosted by stronger-than-expected sales of iPads and Macs, where new chips helped persuade customers to upgrade. Chief Financial Officer Kevan Parekh told analysts gross margins in the current fiscal second quarter will be between 46.5% and 47.5%, with the top end of the range beating estimates of 47.01%, according to LSEG data. "The guidance management provided on the call exceeded expectations, as the iPhone gains momentum and Apple gets past a tough quarter in China," said Gil Luria, managing director at D.A. Davidson. In the just-ended quarter, iPhone sales dropped slightly to $69.14 billion, compared with the $71.03 billion that analysts were expecting, according to LSEG data. Greater China sales dropped to $18.51 billion, compared with $20.82 billion a year earlier and below the $21.33 billion that a Visible Alpha survey of five analysts expected. Total sales of $124.30 billion for the fiscal first quarter ended Dec. 28 inched past Wall Street's target of $124.12 billion, according to LSEG, while earnings per share of $2.40 comfortably beat the consensus target of $2.35. The iPhone maker has positioned AI as a set of new capabilities and features such as drafting emails and transcribing phone calls, but the company is rolling the features out over time and has not yet secured a local partner in China to release them. In an interview, Apple CEO Tim Cook said AI features, called Apple Intelligence, are driving sales of the company's new devices. "We saw that in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Cook said. While Cook said Apple Intelligence is coming in new languages such as French and German in April, he said there is no timeline for when it will become available in China. "We continue to work with the regulators and will release it as soon as we can," Cook said. Cook told Reuters that about half of Apple's 11% decline in China revenues was attributable to changes in how much inventory the company's resellers held. Mac sales during the last quarter benefited from a new lineup of Mac Minis, iMacs and MacBook Pros with a new M4 chip. Apple Intelligence features are more widely available on Apple's Macs and iPads because their larger size means they have more powerful chips. "The silicon makes it perfect for running AI workloads, and so I assume that that's a very key compelling reason for people to upgrade," Cook said. Apple's Mac and iPad sales hit $8.99 billion and $8.09 billion respectively, above estimates of $7.96 billion and $7.32 billion, according to LSEG data. Apple said its services business, which includes iCloud storage and its streaming music and video services, hit $26.34 billion in sales, up 13.9% from the previous year and above estimates of $26.09 billion, according to LSEG data. "While the company's cautious approach to AI rollout has drawn criticism, robust services growth and ecosystem expansion are providing crucial momentum to help ease its continued iPhone struggles in China," said Emarketer analyst Jacob Bourne. The firm's wearables segment, which includes the Apple Watch and AirPods lines, had $11.75 billion in sales, compared with analyst expectations of $12.01 billion, according to LSEG data.

Apple Forecast Cheers Investors After Mixed Holiday Results

(Bloomberg) -- Apple Inc. gave a reassuring revenue forecast for the current quarter, helping boost shares of the world's most valuable company after its holiday results showed jarring declines for China and the iPhone. Sales will grow by a percentage in the low- to mid-single digits, the company said during a conference call Thursday. Though that's in line with the 5% that analysts have been predicting, it was enough to soothe the nerves of investors following a mixed quarterly report. The shares climbed more than 3% in late trading, rebounding from a decrease. They had dropped 5.1% this year through the close, part of a broader tech stock decline. Revenue from China plunged 11% to $18.5 billion in the fiscal first quarter, which ended Dec. 28, Apple said earlier. Analysts had anticipated a gain to $21.6 billion. Sales of the iPhone, meanwhile, dropped less than 1% to $69.1 billion. Wall Street projected $71 billion. The results renewed concerns about China, one of Apple's biggest markets, where it's struggled to fend off competition from local brands. Chief Executive Officer Tim Cook said during the conference call that more than half of the decline in China stemmed from inventory issues. The poor performance for overall iPhone sales suggested that the company didn't get much of a lift from the rollout of a new AI platform, Apple Intelligence. Still, the new iPhone 16 performed better in countries where the AI features were available, Cook said. Apple is playing catch-up with its biggest tech peers in AI. A staggered rollout of Apple Intelligence also has meant that consumers have had to wait for many features. And competitors have jumped out ahead in other areas, such as smart glasses. Apple's wearables business declined over the holidays as well. "Apple needs to accelerate its Apple Intelligence deployment and be a bit more aggressive in emerging areas like smart glasses development to maintain an innovative edge," Emarketer analyst Jacob Bourne said in a note. "The next few quarters will test whether it can balance its cautious approach with the market's hunger for AI innovation." The report also marks a changing of the guard for Apple. It's the first to be announced under new Chief Financial Officer Kevan Parekh, who replaced longtime CFO Luca Maestri at the beginning of this year. Total revenue rose 4% to $124.3 billion in the period, helped by growth in services revenue. Analysts had projected $124.1 billion on average. Profit rose to $2.40 a share, beating the average estimate of $2.35. Like the revenue figure, that number was a record high. The latest iPhones aren't markedly different than the prior models -- a factor that may have led some consumers to hold off on upgrades. Though the company has touted the Apple Intelligence platform as a reason to buy the device, its earlier iPhone 15 Pro models can also run the software. Apple is planning a larger iPhone refresh this year, including a replacement for its low-end SE model in the coming months and a thinner iPhone in the fall. The services division, which includes the App Store and Apple Music, was a bright spot, bringing in an all-time record of $26.3 billion and growing 14%. Wall Street had been looking for $26.1 billion. Services revenue in the second quarter will climb in the low-single digits, Apple said during the call. The Mac and iPad lineups also performed better than expected. The Mac generated sales of $8.99 billion in the quarter, beating estimates of $7.94 billion. Apple updated several models with AI-focused M4 chips last year, and it plans to roll out a new MacBook Air soon. It's also expected to unveil desktop computers later in the year. The iPad revenue grew 15% to $8.09 billion, compared with an estimate of $7.35 billion. After taking a break in 2023 from launching new models, the company revamped the iPad Pro and iPad Air last May and refreshed the iPad mini in the fall. It's planning new low-end and iPad Air models in the coming months. The company's wearables, home and accessories category, which has struggled in recent quarters, posted revenue of about $11.8 billion. That was down slightly from a year earlier and below the projection of nearly $12 billion. The company released a redesigned Apple Watch Series 10 and rolled out two new AirPods models last year, but its latest product category -- the Vision Pro headset -- hasn't been a sales driver. More broadly, Cupertino, California-based Apple still faces plenty of challenges at home and internationally. Its struggles in China have stemmed in part from not being able to offer Apple Intelligence in the country. That's made it harder to compete with local brands like Huawei Technologies Co. Apple is working to find an AI partner that will let it launch the AI platform in China. In the EU, where Apple's AI won't be offered to customers until April, the company is facing continued scrutiny over the dominance of its App Store. The company is under threat of fines if it doesn't concede to regulators and change policies, including those related to subscription payments, that could weigh on its services results. Locally, the company is bracing for the possibility of new tariffs during the second Trump administration. President Donald Trump has discussed imposing the levies on goods imported into the US from China and elsewhere. Right now, Apple makes the majority of its processors in Taiwan via partner Taiwan Semiconductor Manufacturing Co., while most of its devices are assembled in China. Apple's biggest hurdle may be in artificial intelligence, where it remains behind many of its tech peers. Apple Intelligence -- introduced in stages over a period of months -- has suffered from bugs, including inaccurate news summaries. And the homegrown features pale in comparison with offerings from OpenAI, Google Gemini and the emerging DeepSeek. (Updates with more remarks from conference call starting in fifth paragraph.)

Apple shares rise after positive sales outlook signals iPhone recovery

Apple executives said they expect sales for the current quarter to rise in the low- to mid-single digit range. After accounting for a 2.5 percentage point impact from foreign exchange rates, that forecast appeared to beat the 5% rise to $95.3 billion expected by analysts for the quarter that will end in March, according to data from LSEG.Apple shares rose in after-market trading on Thursday after the company forecast higher sales than Wall Street expected, a sign the company expects iPhone sales to recover as it rolls out artificial intelligence features. Apple executives said they expect sales for the current quarter to rise in the low- to mid-single digit range. After accounting for a 2.5 percentage point impact from foreign exchange rates, that forecast appeared to beat the 5% rise to $95.3 billion expected by analysts for the quarter that will end in March, according to data from LSEG. Apple shares rose 3.14% after the forecast. For the just-ended fiscal first quarter, Apple beat Wall Street's quarterly profit estimates, but iPhone sales and China revenue for the holiday quarter were weak due to stiff Chinese competition and a slow rollout of artificial intelligence features. The company's overall sales and profits were boosted by stronger-than-expected sales of iPads and Macs, where new chips helped persuade customers to upgrade. Chief Financial Officer Kevan Parekh told analysts gross margins in the current fiscal second quarter will be between 46.5% and 47.5%, with the top end of the range beating estimates of 47.01%, according to LSEG data. "The guidance management provided on the call exceeded expectations, as the iPhone gains momentum and Apple gets past a tough quarter in China," said Gil Luria, managing director at D.A. Davidson. In the just-ended quarter, iPhone sales dropped slightly to $69.14 billion, compared with the $71.03 billion that analysts were expecting, according to LSEG data. Greater China sales dropped to $18.51 billion, compared with $20.82 billion a year earlier and below the $21.33 billion that a Visible Alpha survey of five analysts expected. Total sales of $124.30 billion for the fiscal first quarter ended Dec. 28 inched past Wall Street's target of $124.12 billion, according to LSEG, while earnings per share of $2.40 comfortably beat the consensus target of $2.35. The iPhone maker has positioned AI as a set of new capabilities and features such as drafting emails and transcribing phone calls, but the company is rolling the features out over time and has not yet secured a local partner in China to release them. In an interview, Apple CEO Tim Cook said AI features, called Apple Intelligence, are driving sales of the company's new devices. "We saw that in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Cook said. While Cook said Apple Intelligence is coming in new languages such as French and German in April, he said there is no timeline for when it will become available in China. "We continue to work with the regulators and will release it as soon as we can," Cook said. Cook told Reuters that about half of Apple's 11% decline in China revenues was attributable to changes in how much inventory the company's resellers held. Mac sales during the last quarter benefited from a new lineup of Mac Minis, iMacs and MacBook Pros with a new M4 chip. Apple Intelligence features are more widely available on Apple's Macs and iPads because their larger size means they have more powerful chips. "The silicon makes it perfect for running AI workloads, and so I assume that that's a very key compelling reason for people to upgrade," Cook said. Apple's Mac and iPad sales hit $8.99 billion and $8.09 billion respectively, above estimates of $7.96 billion and $7.32 billion, according to LSEG data. Apple said its services business, which includes iCloud storage and its streaming music and video services, hit $26.34 billion in sales, up 13.9% from the previous year and above estimates of $26.09 billion, according to LSEG data. "While the company's cautious approach to AI rollout has drawn criticism, robust services growth and ecosystem expansion are providing crucial momentum to help ease its continued iPhone struggles in China," said Emarketer analyst Jacob Bourne. The firm's wearables segment, which includes the Apple Watch and AirPods lines, had $11.75 billion in sales, compared with analyst expectations of $12.01 billion, according to LSEG data.

Apple results top estimates even as iPhone sales stall

Apple revealed quarterly results that slightly exceeded Wall Street expectations, but iPhone sales were flat on the previous year as the company battles rising competition from local device makers in China. The company on Thursday reported revenue of $124.3bn for its December quarter, beating analysts' estimates in a Bloomberg poll of $124.1bn and up 4 per cent from the same period in the previous year. iPhone sales were $69.1bn, roughly flat year-on-year. It marks the first full quarter since Apple rolled out 'Apple Intelligence,' its suite of AI features that include a partnership with OpenAI. Apple's chief financial officer Kevan Parekh told the Financial Times the company was "incredibly optimistic about the profound impact of AI". The performance of the AI-enabled iPhone 16 was stronger than in markets where Apple Intelligence was not available, he said, suggesting Apple Intelligence has piqued the interest of consumers. Parekh stepped into the role this year, taking over from Luca Maestri, who had been in the position for a decade. Revenue for the China region, where the company has come under increasing competitive pressure from local smartphone makers such as Huawei and Xiaomi, was $18.5bn, down about 11 per cent. Apple's services business, which includes the App Store, iCloud and Apple Pay, hit a record high, posting revenue of $26.3bn. Its iPad and MacBook products also had double-digit growth. Apple's overall net income was $36.3bn, above estimates of $35.5bn. Diluted earnings per share were $2.40, also above Wall Street expectations. The results come as concerns grow about the impact of a potential sweeping new US tariff regime under President Donald Trump, who this week promised to impose tariffs on Taiwanese semiconductor manufacturers. Apple's supply chain relies heavily on exporters in Asia. Parekh declined to comment on potential tariff risks, saying the company was "closely monitoring the situation".

Apple Shares Rise After Positive Sales Outlook Signals iPhone Recovery

Overall sales and profits were boosted by stronger-than-expected demand Apple executives on Thursday forecast relatively strong sales growth, a sign the company will recover from a dip in iPhone sales as it rolls out artificial intelligence features. The forecast comes after Apple delivered a slight drop in iPhone revenues for the holiday shopping quarter and lagged Wall Street estimates, hampered by a lack in some markets of Artificial Intelligence (AI) features meant to be the chief selling point of its latest devices. Apple Chief Executive Tim Cook said those features will reach more users in Europe this spring, and shares rose 3.14 percent in post-market trade. Apple has approached AI more cautiously than many of its peers, eschewing the huge data center spending of rivals such as Microsoft and instead envisioning AI as features meant to help sell its latest hardware. That approach paid off earlier this week when China's DeepSeek unveiled free AI technology that sparked fears of price wars, sank stocks of some of Apple's competitors and sent shares of the iPhone maker up slightly. Despite the AI rollout stumbles, Apple's overall sales and profits were boosted by stronger-than-expected sales in its fiscal first quarter of iPads and Macs, where new chips helped persuade customers to upgrade. And Chief Financial Officer Kevan Parekh gave a rosier outlook for the current fiscal second quarter, saying the company expects sales to rise in the low- to mid-single digit range, after accounting for a negative 2.5 percentage point impact from a strong dollar. "The guidance management provided on the call exceeded expectations, as the iPhone gains momentum and Apple gets past a tough quarter in China," said Gil Luria, managing director at D.A. Davidson. In the just-ended quarter, iPhone sales dropped slightly to $69.14 billion (roughly Rs. 5,99,024 crore), compared with the $71.03 billion (roughly Rs. 6,15,229 crore) that analysts were expecting, according to LSEG data. Greater China sales dropped to $18.51 billion (roughly Rs. 1,60,367 crore), compared with $20.82 billion (roughly Rs. 1,80,381 crore) a year earlier and below the $21.33 billion (roughly Rs. 1,84,793 crore) that a Visible Alpha survey of five analysts expected. Total sales of $124.30 billion (roughly Rs. 10,76,978 crore) for the fiscal first quarter ended December 28 inched past Wall Street's target of $124.12 billion (roughly Rs. 10,75,320 crore), according to LSEG, while earnings per share of $2.40 comfortably beat the consensus target of $2.35 (roughly Rs. 203) The iPhone maker has positioned AI as a set of new capabilities and features such as drafting emails and transcribing phone calls, but the company is rolling the features out over time and has not yet secured a local partner in China to release them. In an interview, Apple CEO Tim Cook said AI features, called Apple Intelligence, are driving sales of the company's new devices. "We saw that in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Cook said. While Cook said Apple Intelligence is coming in new languages such as French and German in April, he said there is no timeline for when it will become available in China. "We continue to work with the regulators and will release it as soon as we can," Cook said. Cook told Reuters that about half of Apple's 11 percent decline in China revenues was attributable to changes in how much inventory the company's resellers held. Mac sales during the last quarter benefited from a new lineup of Mac Minis, iMacs and MacBook Pros with a new M4 chip. Apple Intelligence features are more widely available on Apple's Macs and iPads because their larger size means they have more powerful chips. "The silicon makes it perfect for running AI workloads, and so I assume that that's a very key compelling reason for people to upgrade," Cook said. Apple's Mac and iPad sales hit $8.99 billion (roughly Rs. 77,891 crore) and $8.09 billion (roughly Rs. 70,094 crore) respectively, above estimates of $7.96 billion (roughly Rs. 68,965 crore) and $7.32 billion (roughly Rs. 63,414 crore), according to LSEG data. Apple said its services business, which includes iCloud storage and its streaming music and video services, hit $26.34 billion (roughly Rs. 2,28,190 crore) in sales, up 13.9 percent from the previous year and above estimates of $26.09 billion (roughly Rs. 2,25,985 crore), according to LSEG data. "While the company's cautious approach to AI rollout has drawn criticism, robust services growth and ecosystem expansion are providing crucial momentum to help ease its continued iPhone struggles in China," said Emarketer analyst Jacob Bourne. The firm's wearables segment, which includes the Apple Watch and AirPods lines, had $11.75 billion (roughly Rs. 1,01,794 crore) in sales, compared with analyst expectations of $12.01 billion (roughly Rs. 104 crore), according to LSEG data. © Thomson Reuters 2025

Apple Tops a Billion Subscribers as Services Climb to Record Revenue | PYMNTS.com

Go figure. Apple reports flat sales for Q4 on its flagship product and Wall St. applauds. But that's what happened Thursday (Jan. 30) as the company reported record overall revenue and a positive impact so far on iPhone sales from Apple Intelligence. By the numbers, Apple reported a 4% year-over-year increase to $124.3 billion, alongside record earnings per share (EPS) of $2.40, a 10% jump year over year. iPhone revenue reached $69.1 billion, with all-time revenue records in numerous markets and regions but a weak performance in the Chinese market. The quarter is the first to include iPhone 16 sales, and Apple released its Apple Intelligence AI suite for the devices during the quarter. CEO Tim Cook stressed that the iPhone 16 models performed stronger in markets where Apple Intelligence features were available. They're not available in China. Overall, China's sales declined 11.1% during the quarter to $18.51 billion, the largest drop in China's sales since the same quarter in 2024 last year when they fell 12.9%. "We did see that the markets where we had rolled out Apple Intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Cook told the company's earnings call. This indicates, he said, that the new AI capabilities, including features like writing tools, Image Playground, Genmoji, and Visual Intelligence, are driving customer demand. Apple reported a record for iPhone upgraders during the quarter, with the iPhone 16 family outperforming the iPhone 15 family since launch. Cook said this indicates a strong desire among existing customers to adopt the latest technology, with Apple Intelligence being a key factor. The company's installed base of active devices also reached a new record of 2.35 billion. All of this led to Apple's services sector continuing to be a major growth driver, achieving a record $26.3 billion in revenue, a 14% increase year-over-year. The services sector includes subscriptions, warranties, and licensing deals and accounted for a reported $23.12 billion in revenue, 14% higher than the same period last year. Cook said the company had over 1 billion subscriptions, including direct subscriptions for services like Apple TV+ and iCloud and subscriptions to third-party apps through the company's App Store system. The company saw records in the Americas, Europe, and the rest of Asia Pacific, with a December quarter record in Japan. The services business has seen nearly $100 billion in revenue in the past year. Paid subscriptions also grew at a double-digit pace. Increased customer engagement with service offerings, Cook said, is a key factor driving growth. Other key points on the company's product roster included overall Mac revenue, up 16% year over year to $9 billion, driven by the new M4 chip and broad-based strength across its product line. iPad revenue rose by 15% year over year to $8.1 billion, with more than half of the buyers new to the product. Wearables, home and accessories revenue was down 2% year over year at $11.7 billion. However, the Apple Watch installed base hit a new all-time high. The call was absent talk about AI-based capital expenditures. When asked about the perception that Apple is a big beneficiary of lower costs of compute given the rise of Chinese AI startup DeepSeek, Cook responded that, "In general, I think innovation that drives efficiency is a good thing. And that's what you see in that model." He also highlighted Apple's integration of silicon chips and software and its hybrid model as continuing to serve the company well. Looking ahead, Cook emphasized his belief in the mainstream adoption of Apple Intelligence and said, "I think I know from my own personal experience once you start using the features, you can't imagine not using them anymore." He noted that the user base will continue to grow with the rollout of new languages in April, as well as the increasing number of users with iPhone 15 Pro and iPhone 16 models, which are required to use Apple Intelligence.