Apple's Earnings Top Estimates, But iPhone Sales Fall Short

Apple Inc. (NASDAQ: AAPL) reported its fiscal first-quarter earnings today, with revenue topping estimates but iPhone sales falling short. The tech giant's revenue rose 4% year-over-year to a record $124.3 billion, while earnings per share (EPS) climbed 10% to $2.40. However, iPhone sales slipped just under 1% to $69.14 billion, missing projections.



The better-than-expected results were driven by Apple's services revenue, which grew 14% to $26.34 billion. Mac and iPad sales also rose over 15% to $8.99 billion and $8.09 billion, respectively. However, the iPhone's decline in sales was a concern, particularly in the Chinese market, where revenue slipped by just over 11%.

CEO Tim Cook attributed the iPhone's performance to a change in channel inventory and the lack of Apple Intelligence in the region. He also expressed optimism about the upcoming availability of Apple Intelligence in more languages, including Mandarin, this spring.

Apple's board of directors declared a cash dividend of $0.25 per share, payable on February 13, 2025, to shareholders of record as of the close of business on February 10, 2025.



In conclusion, Apple's earnings topped estimates, but the iPhone's sales decline is a cause for concern. The company's services revenue growth and the upcoming availability of Apple Intelligence in more languages could help drive future growth. However, investors will be watching closely to see if Apple can address the iPhone's sales decline and maintain its market leadership in the smartphone industry.