Apple earnings surpass expectations despite iPhone sales drop

Apple posts record earnings but iPhone and China sales fall short, offset by growth in services division.

Apple has announced record financial results for the last quarter of 2024, meeting Wall Street estimates despite disappointing sales figures for the iPhone and in China.

The company reported earnings of $2.41 per share, surpassing the forecast of $2.35, and revenue of $124.3 billion, exceeding estimates of $124.26 billion.

However, iPhone sales reached $69.1 billion, falling short of expectations of $70.7 billion and down compared to the previous year. Sales in China also underperformed, totalling $18.5 billion against forecasts of $20.9 billion, reflecting an 11% decline year-over-year.

The overall sales growth of 4% and a net profit increase of 10% were primarily driven by Apple’s services division, which generated $26.3 billion in revenue, a 14% increase year-over-year.

Apple’s shares dropped 0.7% prior to the earnings report but had risen over 5% earlier in the week due to market reactions to advances in AI technology.

CEO Tim Cook expressed optimism regarding future iPhone sales, attributing strong performance in markets where new AI features had been launched.

The mixed results have raised concerns among analysts, particularly regarding declining market share in China and challenges posed by currency fluctuations.

Apple’s latest results follow similar earnings reports from other major tech companies, which elicited varied responses from investors.