Apple (AAPL) has announced its fiscal first-quarter earnings that surpasses expectations because of the boost in services revenue. However, iPhone sales did not meet expectations.
The revenue of the tech giant has increased by 4% year-over-year, reaching $124.3 billion. This places it close with the analyst predictions from Visible Alpha. Earnings increased to $36.33 billion, compared to $33.92 from the previous year, exceeding anticipations.
Breaking it down by segment, Apple’s services revenue increased by 145%. Sales of Mac and iPad also saw impressive growth and climbed over 15%. However, the iPhone which is the main revenue driver of Apple experienced a slight decline of just under 1%, falling short of projections.
This quarter marked the first full period since the launch of the iPhone 16 in September. These results came across amid worries about slowing down sales in China where local smartphone manufacturers like Huawei and Vivo have been gaining traction.
In greater China region was the only area where Apple experienced a drop in sales compared to the previous year. During the earnings call, CEO Tim Cook noted that the sales of iPhone 16 have been especially strong in markets where Apple Intelligence is operational.
In regions such as China, the absence of Apple Intelligence because of regulatory challenges has impacted Apple’s performance. Cook also highlighted that the iPhone 16 has outshone the post-launch performance of the iPhone 15 from a year ago.
He also mentioned that there was a record number of device upgrades during the quarter with active Apple devices reaching 2.35 billion. Apple projects that its fiscal second-quarter revenue will boost in the mid-to-low single digits meeting expectations.
Following the earnings call, Apple shares increased by 3% in after-hours trading. The stock has seen a significant increase of over 27% in the past year, closing on Thursday.
Business Journalist
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