On Thursday, Apple unveiled its quarterly results following the introduction of its new iPhone models, surpassing analysts’ forecasts on Wall Street. The company demonstrated solid financial growth and robust profits, even amidst a sluggish progression in artificial intelligence. This report comes shortly after Apple achieved a market capitalization of $4 trillion for the first time.
“We are thrilled to announce a record revenue of $102.5 billion for the September quarter, featuring unprecedented revenue from both the iPhone and our services division,” stated Apple CEO Tim Cook. Despite the encouraging overall iPhone sales, the revenue generated from smartphone sales in China did not meet Wall Street’s expectations.
Cook also anticipates a revenue growth of 10% to 12% for the quarter ending in December, which is typically Apple’s peak growth period.
The launch of new iPhones, particularly the iPhone 17 and 17 Pro, has rekindled demand for Apple products, notably in China, where sales have been underwhelming. There is ongoing speculation regarding the demand for the ultra-slim iPhone Air, with analysts divided on whether production has been decreased.
“Although the market is predominantly focused on AI adoption and monetization, Apple has demonstrated that its traditional strategy continues to yield results this quarter, fueled by substantial sales growth in core products and services, alongside a stronger global economy than anticipated,” commented Thomas Monteiro, senior analyst at Investing.com.
Apple recorded a revenue of $102.47 billion, reflecting an 8% year-on-year increase, surpassing the analyst expectation of $102.24 billion. Additionally, the company exceeded expectations for revenue from “other products” and services. However, iPhone sales amounted to $49.03 billion, slightly under the estimated $50.19 billion. Apple’s shares saw a modest rise in after-hours trading.
John Belton, a portfolio manager at Gabelli Funds, attributed the optimistic forecast to climbing iPhone sales and increased prices for the latest models. “The standout data point from Apple’s last earnings report was iPhone sales,” noted Belton. “Double-digit growth signifies the strongest iPhone growth in three years.
Despite this robust revenue, Apple trails behind other tech firms in rolling out AI products. The company has yet to launch any AI offerings to rival those by Meta, Google, and Microsoft. Furthermore, Apple faces challenges due to the varying tariffs imposed by former President Donald Trump on China and India, where a large portion of its manufacturing occurs.
Nonetheless, Apple’s stock price has increased over recent weeks, consequently boosting its market cap and placing it among only three companies globally valued at over $4 trillion, alongside Nvidia and Microsoft.
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Apple’s stock has surged more than 50% since its lows in April, with analysts attributing the rise to the introduction of the company’s new products. Alongside the iPhone 17, Apple also unveiled new AirPod earbuds featuring live translation capabilities and upgrades to its Apple Watch lineup.
This week, Apple will be joined by other leading tech giants—Microsoft, Meta, Amazon, and Alphabet—as they report their earnings while the overall U.S. stock market reaches unprecedented highs. While Microsoft and Alphabet showcased strong results on Wednesday, Meta Inc. reported more mixed outcomes, resulting in a dip in stock prices.
Source: www.theguardian.com
