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