Apple's Strategic Moves: A Detailed Analysis of Q3 Performance

Apple reports promising growth forecasts following a strong third-quarter performance, driven by better-than-expected iPhone sales. Despite challenges in China, Apple's diversification into AI technologies and new product launches hold potential. Regulatory scrutiny and competition continue to be significant factors in its global strategy.

Apple on Thursday projected steady growth after reporting third-quarter iPhone sales that surpassed Wall Street expectations, although overall performance in China was disappointing. Shares rose 1% in extended trading.

Revenue in Apple's fiscal fourth quarter is expected to mirror the 4.9% increase seen in the April-June period, totaling $85.78 billion, ahead of analyst estimates of $84.53 billion. Sales of iPhones fell 0.9% to $39.30 billion, less than the forecasted 2.2% decline, as demands surged pre-launch of AI features.

Despite China's 6.5% sales drop, Apple initiated discounts on iPhones to rival local competitors. Future growth hinges on AI development costs and consumer interest in AI-driven features. Probes in the EU and U.S. regulatory pressures remain ongoing challenges for the tech giant.

(With inputs from agencies.)