Apple Q1 Earnings Beat Expectations, but iPhone Revenue Falls Short
Apple (AAPL) reported stronger-than-expected earnings per share and revenue in its fiscal first quarter. However, iPhone revenue underperformed expectations, and sales in the Greater China region were weaker than anticipated.
Earnings and Revenue Beat Estimates
Apple reported EPS of $2.40 on revenue of $124.3 billion, exceeding analyst consensus estimates of $2.35 EPS and $124.1 billion revenue. The Services segment performed well, generating $26.3 billion in revenue, meeting Wall Street's expectations.
iPhone Revenue Disappoints
The iPhone segment brought in $69.1 billion, falling short of expectations of $71 billion. This represents a slight decline from the $69.7 billion reported in the same quarter last year.
China Sales Remain a Challenge
Greater China sales came in at $18.5 billion, significantly lower than Wall Street's estimate of $21.5 billion. Apple has faced ongoing challenges in China, with sales declining in recent years due to economic factors and competition.
AI Push and Product Releases
Apple's recent AI initiatives and upcoming product releases may provide a boost to its revenue. The company is expected to launch a new entry-level iPhone SE, iPads, and MacBook Airs in the coming months.
Stock Performance
Apple shares rose over 3% in pre-market trading following the earnings release. Despite recent concerns about iPhone sales, Apple's stock has gained 24% over the past 12 months.