Apple Soothes Wall Street Despite iPhone Sales Dip in China

Apple's (AAPL) Q1 earnings report eased analysts' concerns as revenue and EPS exceeded expectations. Despite a 11% decline in iPhone sales in China, CEO Tim Cook attributed it to strategic inventory adjustments, indicating stable demand.

Analyst Reactions

* JPMorgan's Samik Chatterjee raised his price target to $270, citing Cook's positive outlook and Chinese subsidy announcements.
* Citi's Atif Malik maintained a Buy rating, highlighting strong iPhone upgrades driven by Apple Intelligence.
* Raymond James' Srini Pajjuri emphasized Apple's strong position in AI due to its ecosystem, hardware capabilities, and privacy focus.

AI Landscape

While Apple remains behind the "Magnificent Seven" in AI investments, it has taken a more prudent approach to capital expenditures. Cook emphasized Apple's focus on on-device AI, which offers lower capex needs and faster monetization potential.

Wall Street Sentiment

Apple shares rose following the earnings report, driven by positive analyst commentary. However, Jefferies' Edison Lee maintained his Underperform rating, expressing skepticism about the timing of attractive AI services for smartphone users.

StockStory's Perspective

StockStory aims to empower individual investors with market-beating insights. Laura Bratton is a Yahoo Finance reporter available on Bluesky @laurabratton.bsky.social and via email at [email protected].