Apple Outshines Expectations but Faces Challenges in China

Apple exceeded Wall Street's profit predictions despite iPhone sales and China revenue experiencing a decline. Strong sales of Mac and iPads boosted overall performance. While AI features lagged, Apple's services and wearables saw growth, providing momentum amidst struggles in the Chinese market.

Apple beat Wall Street's quarterly profit estimates on Thursday, with strong sales of iPads and Macs compensating for weaker iPhone sales and China revenue. The tech giant was affected by tough Chinese competition and a slow rollout of artificial intelligence features.

The company's iPhone sales saw a slight dip to $69.14 billion, which was below analysts' prediction of $71.03 billion, according to LSEG data. Greater China sales fell to $18.51 billion, below the prior year and analysts' forecasts. Despite these challenges, total sales for the fiscal first quarter just surpassed Wall Street's target.

CEO Tim Cook emphasized that AI features, although limited in some regions, are driving new device sales. While these capabilities are expanding to new languages, their availability in China remains uncertain due to regulatory conditions. Apple's services and wearables segments saw growth, helping buffer against iPhone setbacks in China.

(With inputs from agencies.)