Apple shares rise as Q3 iPhone revenue beats expectations
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The news: Apple recorded a return to sales growth in the third quarter, as better-than-expected iPhone revenue offset a sales decline in China.
The numbers: Shares in Apple edged higher in extended trading on the Nasdaq, up 0.7% by 7:55am AEST, after closing the day 1.68% lower.
Q3 revenue rose 4.9% to USD85.78 billion ($131.95 billion) year on year, beating the average analyst estimate of USD84.53 billion, according to LSEG data.
iPhone sales fell 0.9% to USD39.30 billion, beating the 2.2% drop projected by analysts, Reuters reported.
However, sales in Apple's third-largest market China weighed on the result, declining 6.5%, as the company moves to discount its iPhones in the country to compete with cheaper models by local competitors like Huawei.
Apple's quarterly earnings per share were USD1.40, above Wall Street estimates of USD1.35, according to LSEG data.
The context: Investors in Apple will hope the launch of its iPhone 16 series, slated for September, will be a watershed moment for its "Apple Intelligence" technology.
In June, the company said it will integrate artificial intelligence into its latest operating system, and utilise its partnership with OpenAI to bring ChatGPT to its products.
Meanwhile, Apple faces three probes in the European Union, after the bloc's antitrust regulator accused the company's App Store of breaching its Digital Markets Act. In US, the Department of Justice also accused Apple of driving up prices by monopolising the smartphone market.
What they said: Apple CEO Tim Cook said: "During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac."
"We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work," he said.
The sources: Apple earnings release, Reuters
