Prime Highlight
- Apple topped Wall Street estimates for fiscal Q1, driven by a strong rebound in iPhone sales and robust demand across major global markets.
- Growth in China was a standout, with a sharp rise in iPhone upgrades and new users switching from rival brands.
Key Facts
- Apple reported revenue of $143.76 billion, up 16% year over year, with earnings per share of $2.84 versus estimates of $2.67.
- iPhone revenue jumped 23% to $85.27 billion, while total sales in Greater China rose 38% to $25.53 billion.
Background
Apple on Thursday reported fiscal first-quarter earnings that exceeded Wall Street expectations, helped by a sharp rise in iPhone sales and strong demand across key markets. The company posted revenue of $143.76 billion for the quarter ended December, marking a 16% increase from a year earlier. Shares rose more than 1% in extended trading.
The company reported earnings per share of $2.84, beating estimates of $2.67. Net income climbed to $42.1 billion, compared with $36.33 billion in the same period last year. Apple’s gross margin also came in higher than expected at 48.2%.
iPhone revenue stood out during the quarter, rising 23% year-on-year to $85.27 billion. Apple said demand for its latest iPhone models launched in September was strong throughout the holiday season. Chief Executive Officer Tim Cook described customer interest as exceptionally high, marking a clear rebound from the previous holiday quarter when iPhone sales declined slightly.
Apple also reported solid growth in China, including Taiwan and Hong Kong. Sales in the region surged 38% to $25.53 billion, driven mainly by iPhone upgrades and new users switching from other brands. Cook said the company recorded an all-time high number of upgraders in mainland China.
Not all segments met expectations. Mac revenue fell 7% to $8.39 billion, missing estimates despite the launch of a new MacBook Pro. Wearables, Home and Accessories revenue declined 2% to $11.49 billion. In contrast, iPad sales rose 6% to $8.6 billion, with many buyers purchasing their first iPad.
Looking ahead, Apple said it expects revenue to grow between 13% and 16% this quarter, though it warned of some iPhone supply constraints. The company continues to increase spending on research and development, particularly in artificial intelligence, while managing rising memory and chip costs.
