Apple Surpasses Wall Street Estimates with Strong iPhone Sales Boost
Apple Inc. has exceeded Wall Street expectations for its quarterly revenue, thanks to robust iPhone sales and a significant rebound in the Chinese market. CEO Tim Cook described demand for the latest iPhone lineup as “staggering.”
Quarterly Revenue and iPhone Sales
The tech giant reported a quarterly revenue of US$143.8 billion for the first fiscal quarter ending December 27, marking a 16% increase year-over-year. This figure surpassed analyst projections of US$138.48 billion.
Particularly impressive was iPhone revenue, which rose to US$85.27 billion, exceeding the expected US$78.65 billion. This marks a remarkable 23% year-over-year increase, with the iPhone 17 lineup driving record sales across all geographic segments.
Notable Financial Metrics
- Earnings per Share: US$2.84, beating the consensus of US$2.67.
- Gross Margins: 48.2%, above analyst expectations of 47.45%.
- Installed Device Base: 2.5 billion devices worldwide.
Despite rising costs in areas such as DRAM memory chips, Apple’s margins remained strong, indicating effective management of operational expenses.
Regional Performance Highlights
Sales in Greater China surged by 38% year-over-year, reaching US$25.53 billion. This result significantly surpassed projections of US$21.32 billion, and Cook noted that the iPhone achieved record sales in the region.
Although Apple does not disclose specific sales figures for India, Cook mentioned that the company experienced double-digit growth in that market, with revenue records set for iPhones and Macs. Plans are underway to open a new retail store in Mumbai.
Other Product Segments
While most categories performed well, Apple’s wearables, home, and accessories segment fell short of expectations, generating US$11.49 billion, less than the anticipated US$12.04 billion. The AirPods Pro 3, released last year, faced supply constraints, affecting overall sales.
Product Performance Overview
| Product Category | Revenue (US$ billion) | Analyst Expectations (US$ billion) |
|---|---|---|
| iPhone | 85.27 | 78.65 |
| Mac | 8.39 | 8.95 |
| iPad | 8.60 | 8.13 |
| Wearables, Home & Accessories | 11.49 | 12.04 |
| Services | 30.01 | 30.07 |
In summary, Apple’s strong quarterly performance underscores the continued demand for its iPhone products and services. The company also solidifies its competitive edge in China and emerging markets, despite challenges from local competitors.
