After the bell on Thursday, Apple (AAPL) reported its first quarter profits, exceeding forecasts' top and bottom lines on improved iPhone sales. Apple reported $2.18 EPS on $119.6 billion in sales. Analysts predicted $2.11 per share on $117.9 billion in sales. Apple fell more than 1% after the report.
The quarter saw iPhone sales of $69.7 billion, compared to $68.6 billion expected. China, the company's third largest market after North America and Europe, sold $20.8 billion, below expectations. Wall Street wanted $23.5 billion in sales.
A slowing Chinese economy and a resurgent Huawei have hampered Apple's sales in the nation. But good North American and European results boosted the corporation.
“Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services,” Apple CEO Tim Cook stated. We are thrilled to report that our installed base of active devices has topped 2.2 billion, a record high across all products and regional sectors.
Apple's first-quarter Mac sales was $7.8 billion, below analysts' projections of $7.9 billion. At $7 billion, iPad sales missed. Wall Street sought $7.1 billion. That's a big reduction from last year's $9.4 billion iPad sales.
Bloomberg's Mark Gurman reports that Apple will upgrade iPads and Macs in March, which may boost sales for both corporate groups in the next year. Expectations were met with 12 billion in wearables, home, and accessories. Apple pulled the item off sales due to a patent dispute with medical device producer Masimo.
The Series 9 and Ultra 2 watches' blood oxygen sensor component that caused the argument has been removed, although its sales impact is uncertain. Apple Services earned $23.1 billion, below expectations of $23.4 billion.
Apple reported results before launching its Vision Pro AR/VR headset. Apple will sell its spatial computer for $3,499 on Feb. 2. It's amazing, but its price will likely deter most buyers.
Apple doesn't share gadget sales data, but CEO Tim Cook's comments on Vision Pro preorders and developer response will be intriguing. If Vision Pro is to succeed, developers must write apps for it.
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