Apple Reports Q1 Earnings Beat, Falls Short on iPhone Revenue
Key Points:
* Apple (AAPL) exceeded analysts' estimates for EPS and revenue in its fiscal Q1.
* iPhone revenue missed expectations, down slightly from last year.
* Greater China sales underperformed Wall Street projections.
* Services business revenue met expectations.
* Apple's overall iPhone market share declined slightly in Q4 despite an increase in smartphone shipments.
Financial Highlights:
* EPS: $2.40 (vs. $2.35 consensus)
* Revenue: $124.3 billion (vs. $124.1 billion consensus)
* iPhone Revenue: $69.1 billion
* Services Revenue: $26.3 billion
* Greater China Sales: $18.5 billion
Concerns and Outlook:
* Sluggish iPhone sales, particularly in Greater China, remain a concern.
* Apple's AI push may not be enough to drive smartphone upgrades.
* Despite positive stock performance in the past year, Meta (META) and Microsoft (MSFT) have outpaced Apple in terms of growth.
Key Trends:
* Apple is expected to release new products, including the entry-level iPhone SE and updated iPads and MacBook Airs.
* The company will continue to enhance its Apple Intelligence software with new features.