Apple Earnings Beat Estimates, Easing iPhone Sales Concerns in China

Key Metrics:

* Earnings per share: $2.40 (vs. $2.35 estimate)
* Revenue: $124.3 billion (vs. $124.1 billion estimate)

iPhone Sales in China:

* Declined 11% year-over-year
* CEO Tim Cook attributed the decline to inventory adjustments

Analyst Commentary:

* JPMorgan analyst Samik Chatterjee raised price target to $270
* Citi analyst Atif Malik reiterated Buy rating
* Raymond James analyst Srini Pajjuri sees Apple as well-positioned for AI bubble

AI Strategy:

* Cook highlighted Apple Intelligence as driving iPhone upgrades
* Apple's focus on on-device AI seen as a competitive advantage
* Morgan Stanley analysts believe Apple's AI ambitions are more conservative than peers

Stock Performance:

* Shares rose as much as 3% in early trading Friday

Market Implications:

* Earnings report eases concerns over iPhone sales in China
* Analysts optimistic about Apple's AI strategy
* Apple's stock remains attractive for investors focused on AI growth