Apple CEO Tim Cook listens during a program at the Asia-Pacific Economic Cooperation Leaders’ Week at Apple Park in San Francisco on Nov. 17, 2023.
Andrew Caballero-Reynolds | AFP | Getty Images
Apple reported fiscal first-quarter earnings Thursday that beat estimates for revenue and earnings, but it showed a 13% decline in sales in China, one of its most important markets.
Apple shares fell more than 4% in extended trading after management provided some details about outlook for the current quarter that suggested weakness in iPhone sales.
Here’s how Apple did versus consensus expectations from LSEG, formerly known as Refinitiv, for the quarter ending Dec. 30:
- Earnings per share: $2.18 vs. $2.10 expected
- Revenue: $119.58 billion vs. $117.91 billion expected
Here’s how Apple’s product lines did versus LSEG expectations:
- iPhone revenue: $69.70 billion vs. $67.82 billion expected
- Mac revenue: $7.78 billion vs. $7.73 billion expected
- iPad revenue: $7.02 billion vs. $7.33 billion expected
- Other Products revenue: $11.95 billion vs. $11.56 billion expected
- Services revenue: $23.12 billion vs. $23.35 billion expected
- Gross margin: 45.9% vs. 45.3% expected
Apple did not provide guidance for the current quarter ending in March.
Apple CFO Luca Maestri said that Apple expected iPhone sales in the March quarter would be similar to last year’s $51.33 billion in revenue, after taking out $5 billion in sales attributed to outperformance a year ago as supply recovered from Covid shutdowns and caught up to demand.
Maestri said total company revenue would be similar to last year’s $94.84 billion after taking out the $5 billion in iPhone sales. He added that services would grow the same as in the December quarter, which was 11%.
Apple reported 2% sales growth in the December quarter, breaking a streak of four straight quarters with annual revenue declines. Apple’s gross margin continues to rise, nearly breaking 46% in the December quarter. Apple reported $33.92 billion…
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