Apple Reports Q1 Earnings: Beat on Top and Bottom Lines, but iPhone Revenue Falls Short
* Revenue: $124.3 billion (beat estimates of $124.1 billion)
* Earnings per share: $2.40 (beat estimates of $2.35)
Key Metrics:
* iPhone: $69.1 billion (below expectations of $71 billion)
* Services: $26.3 billion (met expectations)
* Greater China sales: $18.5 billion (below expectations of $21.5 billion)
China Sales Remain a Challenge
* Greater China sales declined 8% in 2024 and 2% in 2023.
* China sales impacted by weak renminbi and lower iPhone and iPad sales.
Market Share and AI Push
* iPhone market share fell 1% year-over-year in Q4 despite overall smartphone market growth.
* Apple launched Apple Intelligence updates to boost iPhone sales.
* Analysts express concern over the effectiveness of AI updates as a catalyst for sales.
Product Pipeline and Stock Performance
* Apple to release a new iPhone SE, iPads, and MacBook Airs in the coming months.
* Apple shares up 24% in the past 12 months.
* Meta and Nvidia outperformed Apple, while Microsoft lagged.