Apple Overall revenue increased by 4% In its first financial quarterBut it missed the expectations of Wall Street’s iPhone sales and the sale in China saw a decline in 11.1%, the company said on Thursday.
The stock fell less than 2% in extended trading.
Here is how Apple estimated LSEG unanimous unanimous for the quarter ended December 28.
- earnings per share: $ 2.40 vs $ 2.35 approximate
- Income: $ 124.30 billion vs $ 124.12 billion estimated
- iPhone revenue: $ 69.14 billion vs $ 71.03 billion estimated
- Mac revenue: $ 8.99 billion vs $ 7.96 billion estimated
- iPad revenue: $ 8.09 billion vs $ 7.32 billion estimated
- Other product revenue: $ 11.75 billion vs $ 12.01 billion estimated
- Revenue of services: $ 26.34 billion vs $ 26.09 billion estimated
- gross margin: 46.9% vs 46.5% estimated
Although Apple’s overall sales increased during the quarter, the company’s closely seen iPhone sales actually fell slightly on a year-on-year basis. The December quarter is the first full quarter with the sale of the iPhone 16, and Apple released its Apple Intelligence AI Suite for the equipment during the quarter.
Apple’s iPhone Miss vs. LSEG’s estimate was the largest for the company in two years, as FY 2023 had the first quarter report. At that time, Apple said that it was missed because it was unable to make enough iPhone 14 models due to production. Issues in China.
The company saw significant weakness in Greater China, including the mainland, Hong Kong and Taiwan. Overall, China’s sales declined by 11.1% to $ 18.51 billion during the quarter. This is the biggest decline in China’s sales since the same quarter last year when they fell 12.9%.
Apple CEO Tim Cook told CNBC’s Steve Kovach that iPhone sales were stronger in countries where Apple Intelligence is available. Currently, the software is available only in a handful of English speaking countries, and it is not accessible in China or Chinese.
Cook said, “During the December quarter, we saw that in the markets, where we rolled out Apple Intelligence, that year-on-year performance on the iPhone 16 family was stronger than markets where we we apple intelligence Did not roll out. ”
Cook said the company planned to release additional languages in April, including a version of Apple Intelligence in simplified Chinese.
Cook told CNBC that the company had three factors in China’s performance. He said that half of the decline of 11.1% were due to a change in “channel inventory”, the fact that Apple Intelligence has not launched in the region and after the quarter ended, China released a national subsidy which was Appel. Sales will stimulate the product.
“If you look at the negative 11, half of the decline is due to a change in the channel inventory, and therefore the operational performance is better,” Cook said.
Apple officials usually give some colors on how the current quarter is taking shape on a call with analysts. Wall Street is expecting guidance for the March quarter of $ 1.66 per share at $ 95.46 billion in revenue.
The company reported $ 36.33 billion in net income during the quarter, which was from $ 33.92 billion to 7.1% in the same period last year.
Apple’s iPad and MAC sales saw a strong growth on struggling sales in the quarter of last year’s holiday. The MAC revenue rose by 15% to $ 8.98 billion and the iPad revenue increased by 15% to $ 8.08 billion. The company’s Mac Division recorded its best growth since the fourth financial quarter of 2022.
The company released the new Mac during the quarter, including New Imac, Mac Mini and MacBook Pro laptops in October, which contributes to partially development. Apple also launched a new iPad Mini during the quarter. Cook blamed development for new products.
“This is inspired by significant enthusiasm around our latest Mac lineup,” Cook said.
Apple’s profit engine, its service division, including membership, warranty and licensing deal reported $ 23.12 billion in revenue, which is 14% higher than the same period last year. Cook said the company had more than 1 billion memberships, including direct memberships for services such as Apple TV+ and iCloud, as well as membership for third party apps through the company’s app store system.
Cook told analysts on an earning call that the company had an active basis of 2.35 billion active equipment, which was from the 2.2 billion figure of the company provided a year ago.
The “other product” category of the company, also known as Wearbals, included Apple Watch, Airpods, Beats and Vision Pro Sales, declining by 2% on year-to-year basis, which sales are $ 11.75 billion Went.
Apple said it would pay a dividend of 25 cents per share and will spend $ 30 billion on dividends during the first quarter and shared the recurrent.
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