Apple reported a 4% increase in overall revenue for its first fiscal quarter, yet missed Wall Street’s iPhone sales expectations and saw a significant decline in China sales. Despite this, shares rose about 3% in extended trading after the company provided a positive forecast for the March quarter, suggesting revenue growth.
For the quarter ending December 28, Apple posted earnings per share of $2.40, slightly above the $2.35 estimated by analysts. Revenue reached $124.30 billion, surpassing the $124.12 billion forecast. However, iPhone revenue fell short at $69.14 billion compared to the estimated $71.03 billion. Meanwhile, Mac and iPad sales exceeded expectations, with Mac revenue at $8.99 billion and iPad revenue at $8.09 billion.
Apple faced challenges in Greater China, where sales declined by 11.1% to $18.51 billion. This marks the largest drop in China sales since the same quarter last year. CEO Tim Cook attributed this decline to factors including a change in channel inventory and the lack of availability of Apple Intelligence software in the region.
Apple’s Services division, which includes subscriptions, warranties, and licensing deals, reported $26.34 billion in revenue, a 14% increase from the same period last year. The company also noted significant growth in its Mac and iPad sales, driven by the launch of new products like the iMac, Mac Mini, MacBook Pro, and iPad Mini.
Looking ahead, Apple expects growth in the March quarter of “low to mid single digits” on an annual basis, with “low double digits” growth projected for its Services division. The company’s strong dollar is expected to impact overall sales by about 2.5%.
CEO’s Remarks
During an earnings call, Tim Cook highlighted the strength of iPhone sales in countries where Apple Intelligence is available. He also mentioned plans to release additional languages for the software in April, including a version in simplified Chinese.
Dividends and Share Repurchases
Apple announced it would pay a dividend of 25 cents per share and reported spending $30 billion on dividends and share repurchases during the first quarter.
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