Apple Narrowly Beats Estimates with Boost from iPhone Sales
AFP/APP
San Francisco: Apple reported revenues on Thursday that slightly surpassed analyst expectations, though its shares fell in after-hours trading despite an iPhone sales boost.
The tech giant’s revenue for the quarter ending September 28 reached $94.9 billion, up from last year’s figures, in a report closely monitored to gauge demand for its latest iPhones.
Revenue in greater China showed a slight decline, falling to $15 billion, while the Americas remained Apple’s largest market with $41.7 billion, and Europe displayed strong growth at $24.9 billion.
Although Apple barely exceeded analyst projections, four other tech giants that reported this week comfortably met market expectations, contributing to a two-percent dip in Apple shares post-results.
The results were impacted by a $10.2 billion back-tax charge from a European Union court ruling, resulting in $15.8 billion payable to Ireland, offset by a US tax credit. iPhone sales for the quarter reached $46.2 billion, surpassing expectations of $45.2 billion.
“Today, Apple is reporting a new September quarter revenue record,” said CEO Tim Cook, noting that the quarter included the launch of the iPhone 16 lineup.
Investors are closely watching for demand for new iPhones with artificial intelligence features, especially with the holiday season approaching.
AI ‘Over Time’
Apple executives noted that early iPhone 16 sales have exceeded those of its predecessor, though no specific figures were provided. The company recently introduced its “Apple Intelligence” AI features across premium iPhone, iPad, and Mac devices, underscoring a major push into generative AI. Apple, however, indicated it would prioritize quality and safety over speed in its AI rollout.
“We’re very early in the cycle, with a lot of new products and features that we are launching,” said CFO Luca Maestri. He added that the “Apple Intelligence” rollout will proceed gradually.
In the quarter, Apple’s services segment, which includes Apple Music, iCloud, the App Store, and Apple TV+, reached a record high of $25 billion, marking a 12 percent increase from last year.
