Apple (AAPL.US) falls nearly 1% despite pressure on its China business

Apple (AAPL.US) opened lower on Friday but ended higher, still down nearly 1% at $224.46 at the time of writing. The company reported its fourth-quarter earnings. Total revenue grew 6.1% year-on-year to $94.9 billion, slightly above the average expectation of $94.4 billion. Apple said its EPS was 97 cents, but adjusted EPS should have been $1.64, excluding a one-time expense related to a European Court of Justice ruling, topping analyst estimates of $1.60. The closely watched gross margin was 46.2%, slightly above the expected 46.1%. The company's AI-enhanced iPhone got off to a good start, topping Wall Street's expectations for the quarter, but a tepid revenue forecast raised questions about whether this momentum can be sustained during the holiday sales season. Moreover, the decline in fourth-quarter sales in China also raised concerns among some analysts and investors. In its quarterly earnings report, Apple said total revenue for the December quarter would grow by low- to mid-single-digit percentages, below analyst estimates of 7%. The company's revenue in China also fell short of expectations in the previous quarter.