Apple's latest earnings report revealed mixed results, with the company posting overall revenue growth of 4% for its first fiscal quarter, yet falling short of Wall Street's expectations for iPhone sales. The tech giant reported iPhone revenue of $69.14 billion, missing the $71.03 billion estimate, marking the largest miss in two years. This shortfall was compounded by an 11.1% decline in sales in Greater China, a critical market for Apple, where the absence of the Apple Intelligence AI suite in the region was noted as a contributing factor. CEO Tim Cook highlighted that iPhone sales were stronger in markets where Apple Intelligence was available, suggesting potential for future growth once the software is rolled out in additional languages, including simplified Chinese in April.
Despite the challenges in iPhone sales and the Chinese market, Apple saw robust performance in other areas. Mac and iPad sales both grew by 15%, with Mac revenue reaching $8.99 billion and iPad revenue hitting $8.09 billion, surpassing analyst expectations. The company's services segment also performed well, generating $26.34 billion in revenue, slightly above estimates. Apple's gross margin of 46.9% exceeded the anticipated 46.5%, indicating strong profitability despite the headwinds in its core iPhone business.
Apple's stock closed at $237.59, down 0.74% from the previous close of $239.36, and further declined by 1.46% in after-hours trading to $234.13.