Apple Earnings Top Wall Street forecasts While iPhone, China Sales Come Short

On By Littum

Apple (AAPL) reported its fiscal earnings in the first quarter after Thursday and beat expectations on top and bottom line, but came short on the iPhone revenue. Sales out of the company’s larger China region were also lower than Wall Street expected in the quarter.

The report comes after Jefferies and Loop Capital downgraded Apple’s stock last week for fear of slugging iPhone sales. Oppenheimer also downgraded shares Wednesday with reference to slower iPhone growth.

For the quarter, Apple reported earnings per Share of $ 2.40 on a $ 124.3 billion turnover. Analysts were looking for EPS of $ 2.35 and a $ 124.1 billion turnover, according to the Bloomberg consensus estimates.

Apple’s iPhone segment brought in $ 69.1 billion against expectations of $ 71 billion, slightly down from the $ 69.7 billion that the company reported for the segment in the last year. The company’s service business generated $ 26.3 billion in revenue in line with Wall Street’s expectations. Greater China Sales peaked at $ 18.5 billion. Wall Street expected $ 21.5 billion.

China has been a sustained area of ​​problems for Apple for the past two years. Sales in the region fell 8% by 2024 and fell to $ 66.9 billion and 2% in 2023. At that time, Apple accused weakness in Renminbi versus the dollar and lower iPhone and iPad sales.

According to Estimates from IDC and Canalys, the total market share of iPhone 1% year fell over the year in the 4th quarter to 23% despite the wider market for smartphone shipments that increased by 3%. Apple started its big AI -push in October and released the first fleet of its Apple Intelligence updates.

The software is intended to act as a key feature to entice consumers to upgrade to the company’s latest and largest smartphones, the iPhone 16 line, but analysts worry that it is not Catalyst Wall Street that originally hoped it would be .

Apple will continue to release Apple Intelligence updates throughout the year and improve its options with more useful features, including the ability to collect information across multiple apps from a single interface.

Apple is also ready to release a number of new products in the coming months, including a new iPhone SE-Entry-Level, as well as new iPads and MacBook Airs, According to Bloomberg’s Mark Gurman.

Apple shares have risen 24% over the past 12 months, about the same as Google (Goog, Googl), which has increased by 27%. NVIDIA (NVDA), meanwhile, has risen 102%despite a routing on Monday driven for fear that China’s Deepseek AI platform has risen the need for high-powered AI chips.

Meta (Meta) has risen by 69%, while Microsoft (MSFT) has proven to be one of Big Tech’s largest laggards and only increases 8% in the last year.