Apple Beats Expectations Despite China Slowdown

Apple Tim Cook
Apple reported better-than-expected fiscal first-quarter results on February 1, 2024, driven by strong iPhone sales and services revenue.

The company posted revenue of $119.58 billion, up 2% year over year. Analysts had expected revenue of $117.91 billion.

Apple’s iPhone revenue was $69.7 billion, up 3% year over year. Services revenue was $23.12 billion, up 17% year over year.

Mac revenue was $7.78 billion, up 9% year over year. iPad revenue was $7.02 billion, down 5% year over year. Wearables, home, and accessories revenue was $11.95 billion, up 10% year over year.

Apple’s earnings per share were $2.18, up 16% year over year. Analysts had expected earnings per share of $2.10.

Apple’s CEO Tim Cook

"We are pleased to report record results for the December quarter, with strong revenue growth across all of our product categories. We continue to see strong demand for our products, and we are very excited about the future of Apple."

More Apple results for Q1 2024 (in dollars):

  • EPS (earnings per share): 2.18 (expected 2.1)
  • iPhone revenue: 69.7 billion (expected 67.96 billion)
  • Services revenue: 23.12 billion (expected 23.31 billion)
  • Mac revenue: 7.78 billion (expected 7.8 billion)
  • iPad revenue: 7.02 billion (expected 7.31 billion)
  • Wearable electronics and smart home revenue: 11.95 billion (expected 11.39 billion).

The impact of China slowdown:

Apple’s revenue from Greater China was $25.8 billion, down 11% year over year. The company attributed the decline to COVID-related disruptions and macroeconomic weakness.

Apple’s active device installed base reached 2.2 billion, up from 2 billion a year ago

Apple’s strong fiscal first-quarter results show that the company is still firing on all cylinders. The company is benefiting from strong demand for its products and services, and it is well-positioned for continued growth in the future.

 

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