Apple earnings slump but beat estimates

The news: Tech giant Apple's quarterly sales and profit have beaten analyst estimates, helped by an uptick in iPhone sales and a boost to services revenue that offset large drops in Mac and iPad sales. However, its holiday quarter sales forecast missed expectations and shares dropped in after-hours trading.

The numbers: Its sales for the fiscal fourth quarter ended 30 September fell roughly 1% to USD89.50 billion ($139 billion) but beat analyst estimates of USD89.28 billion. Net income rose 11% while profit per share of USD1.46 also beat analyst expectations of USD1.39. Apple shares fell more than 3% in after-hours trading on the Nasdaq, after closing the regular session up 2%.

The context: The company has navigated a global smartphone slump better than many of its rivals but faces an uneven economic recovery in China, a key market. Apple’s revenue from China dipped 2.5% and Chief Executive Tim Cook said the company's new high-end handset models — the iPhone 15 Pro and Pro Max devices — are facing supply constraints. Cook said Apple was "working hard to manufacture more" iPhone 15 Pro and Pro Max devices and expects to reach a supply-demand balance later this quarter. The company rolled out new Mac machines this week but said Mac sales slumped by a third for the September quarter and iPad sales declined 10%.