Apple Surpasses Profit Expectations Despite iPhone Sales Decline

Apple's quarterly profits exceeded Wall Street estimates, driven by strong iPad and Mac sales. However, iPhone sales and China revenue dipped due to competition and slow AI rollout. Mac sales were bolstered by new M4 chips. CEO Cook attributed half of China's revenue decline to reseller inventory changes.

Apple's quarterly earnings have outpaced Wall Street's projections, even as iPhone sales and China revenue fell short amid fierce local competition and a slow introduction of AI features.

The company's boosted profits were largely thanks to robust iPad and Mac sales, aided by innovative new M4 chips that encouraged consumer upgrades. Despite these gains, iPhone sales fell to $69.14 billion, just below analysts' expectations of $71.03 billion, based on LSEG data. Revenues in Greater China also saw a decline, dropping to $18.51 billion compared with $20.82 billion the previous year, weaker than the $21.33 billion forecasted by a Visible Alpha survey.

The fiscal quarter, ending December 28, saw total sales reach $124.30 billion, exceeding the $124.12 billion target. Earnings per share of $2.40 also surpassed expectations of $2.35. CEO Tim Cook highlighted that the newly introduced Apple Intelligence features are contributing to increased sales in markets where they are available. However, despite ambitions to expand these features, including to China, timelines remain uncertain as Apple continues efforts to secure regulatory approval.

(With inputs from agencies.)