Apple Q1 Earnings: Beats Expectations but Misses on iPhone Revenue

Apple (AAPL) released its fiscal first quarter earnings after the market closed on Thursday, surpassing expectations in terms of both top and bottom line, but underperforming in iPhone revenue.

Key Metrics:

* Earnings per share (EPS): $2.40 (vs. $2.35 consensus estimate)
* Revenue: $124.3 billion (vs. $124.1 billion consensus estimate)
* iPhone revenue: $69.1 billion (vs. $71 billion consensus estimate)
* Services revenue: $26.3 billion (in line with consensus estimate)
* Greater China sales: $18.5 billion (below $21.5 billion consensus estimate)

iPhone Challenges:

Despite overall market growth in smartphone shipments, Apple's iPhone market share declined 1% year-over-year in Q4 to 23%, according to IDC and Canalys. iPhone revenue for the quarter fell marginally compared to the same period last year.

Outlook:

Apple plans to roll out further Apple Intelligence updates throughout the year, enhancing functionality and potentially driving iPhone upgrades. The company is also scheduled to launch a range of new products, including a new iPhone SE, iPads, and MacBook Airs.

Performance vs. Peers:

Apple stock has gained 24% over the past year, comparable to Google (GOOG/GOOGL)'s 27%. Notably, Nvidia (NVDA) has surged 102%, while Meta (META) has risen 69%. Microsoft (MSFT), however, has lagged behind its tech peers with an 8% gain over the past year.