The iPhone's roughly 1% drop in revenue from the previous year's October-December period wasn't entirely unexpected, given the first software update enabling the device's AI features didn't arrive until just before Halloween, and the technology still isn't available in many markets outside the U.S.
The countries still awaiting Apple's AI suite include China, a key market where the company continued to lose ground. Although he didn't mention China, Apple CEO Tim Cook told investors on a conference call that a software upgrade enabling the AI features in more European markets, as well as Japan and Korea will be rolling out in April.
But in the past quarter Apple also was only able to eke out a modest revenue gain across its entire business, although the results came in ahead of the analyst projections that guide investors. The Cupertino, California, company earned $36.3 billion, or $2.40 per share, a 7% increase from the previous year. Revenue edged up from the previous year by 4% to $124.3 billion.
Those numbers included iPhone revenue of $69.1 billion. In China, Apple's total revenue registered $18.5 billion, an 11% decrease from the previous year.
Part of that erosion in China reflected the iPhone's shrinking market share in that country, where homegrown companies have been making more headway. Apple's iPhone yearover-year shipments in China declined nearly 10% in the most recent quarter, while native companies Huawei and Xiaomi posted yearover-year increases of more than 20%, according to the research firm International Data Corp.
"While China is a potential risk, we think the appeal of Apple products as a luxury product and the potential of AI innovations will keep demand steady in the country," Edward Jones analyst Logan Purk wrote in a research note assessing the company's quarterly report.
The holiday-season results served to confirm bringing AI to the iPhone and Apple's other products may not boost the company's recently lackluster growth as much as investors initially thought it might after Cook unveiled the technology before a rapt crowd last June.
image [https://cdn.magzter.com/1400077361/1738804569/articles/X87bTA6HQ1738821057578/pz4GPJBA81738821162097.jpg]
The anticipation that an Al-infused iPhone would prod hordes of consumers to ditch their current devices and splurge on an upgrade is the main reason Apple's stock price surged by 30% last year. But the sinking realization that an uptick in demand may take longer than expected has caused Apple's shares to backtrack by 5% during the first month of the new year.
The stock initially slipped slightly in extended trading after the numbers came out, but later reversed course and rose by more than 3% after Cook said Apple is seeing a record number of people upgrading their iPhones.
image [htt...
The countries still awaiting Apple's AI suite include China, a key market where the company continued to lose ground. Although he didn't mention China, Apple CEO Tim Cook told investors on a conference call that a software upgrade enabling the AI features in more European markets, as well as Japan and Korea will be rolling out in April.
But in the past quarter Apple also was only able to eke out a modest revenue gain across its entire business, although the results came in ahead of the analyst projections that guide investors. The Cupertino, California, company earned $36.3 billion, or $2.40 per share, a 7% increase from the previous year. Revenue edged up from the previous year by 4% to $124.3 billion.
Those numbers included iPhone revenue of $69.1 billion. In China, Apple's total revenue registered $18.5 billion, an 11% decrease from the previous year.
Part of that erosion in China reflected the iPhone's shrinking market share in that country, where homegrown companies have been making more headway. Apple's iPhone yearover-year shipments in China declined nearly 10% in the most recent quarter, while native companies Huawei and Xiaomi posted yearover-year increases of more than 20%, according to the research firm International Data Corp.
"While China is a potential risk, we think the appeal of Apple products as a luxury product and the potential of AI innovations will keep demand steady in the country," Edward Jones analyst Logan Purk wrote in a research note assessing the company's quarterly report.
The holiday-season results served to confirm bringing AI to the iPhone and Apple's other products may not boost the company's recently lackluster growth as much as investors initially thought it might after Cook unveiled the technology before a rapt crowd last June.
image [https://cdn.magzter.com/1400077361/1738804569/articles/X87bTA6HQ1738821057578/pz4GPJBA81738821162097.jpg]
The anticipation that an Al-infused iPhone would prod hordes of consumers to ditch their current devices and splurge on an upgrade is the main reason Apple's stock price surged by 30% last year. But the sinking realization that an uptick in demand may take longer than expected has caused Apple's shares to backtrack by 5% during the first month of the new year.
The stock initially slipped slightly in extended trading after the numbers came out, but later reversed course and rose by more than 3% after Cook said Apple is seeing a record number of people upgrading their iPhones.
image [htt...
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Apple(Digital) - 1 Issue, February 07, 2025