Apple shares swing as record sales, earnings beat offset by China miss
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The news: Apple beat profit expectations in the September quarter, lifted by strong demand for its latest iPhones and ongoing growth in services, but a sharper-than-expected drop in China sales pulled focus back to one of its most challenging markets.
Revenue for that fourth quarter reached USD102.5 billion ($156.4 billion), a record and slightly above estimates, while earnings per share came in at USD1.85, topping analyst forecasts.
Revenue from Greater China fell 3.6% to USD14.5 billion, missing expectations of USD16.4 billion, according to Bloomberg data.
What they said: Tim Cook told Reuters that a delay in launching the e-SIM-only iPhone Air in China was the “primary reason” for the regional shortfall. The device did not ship there until late October due to regulatory clearance issues.
"However, we're very enthusiastic about China," he said. "We love the response to the new products there, and we expect to grow or to return to growth in Q1. Currently in Q1, we're experiencing supply constraints still on several models of the iPhone 17, and we're filling orders just as fast as we can," Cook said. "It's a good problem to have."
Cook also said iPhone sales in the current quarter are expected to grow by double digits, with overall revenue forecast to rise between 10 to 12% year-on-year, both ahead of analyst expectations.
Apple’s services business (such as Apple TV+, iCloud storage, Apple Music, App Store sales, etc ) surpassed USD100 billion in annual revenue for the first time, with strong quarterly results also reported in wearables, Mac and accessories.
Shares initially fell 1.5% after the results but later recovered to trade more than 3% higher.
