Apple posted record profits last quarter thanks to massive iPhone sale
Apple reported record profits for the last quarter of last year, boosted by strong sales of its latest iPhone in China. The company said in its quarterly earnings report on Thursday that it made $42.1 billion in profit "iPhone had its best financial quarter ever, driven by unprecedented demand," CEO Tim Cook said during an earnings call with shareholders. iPhone sales rose globally, reaching $25.5 billion in the Chinese market, compared to $18.5 billion during the same period last year, according to Apple. Overall,on iPhone sales generated $85.2 billion in revenue for the quarter.Apple also saw strong revenue from services such as digital content and entertainment, reaching a new quarterly record of $30 billion, a 14% increase year-over-year, according to Cook. Apple reported that the number of its devices in use worldwide has surpassed 2.5 billion.revenue of $143.8 billion during that period
What’s happening:
Shares of Apple edged higher in extended trading hours on Thursday, following the release of the company’s fiscal first-quarter results.
Apple's profits beat expectations as sales grew 16% due to demand
What happened:
The iPhone maker posted stronger-than-expected sales and earnings for the latest quarter.
Apple also issued strong revenue growth guidance for the current quarter, driven by upbeat demand for its iPhones and a significant recovery in China.
How were the results:
The Cupertino, California-based company reported low double-digit sales growth for the quarter ended December 27.
Revenues rose 16% year-over-year to $143.76 billion, beating consensus estimates of $138.42 billion.
Earnings came in at $2.84 per share, topping Wall Street expectations of $2.66 per share.
Apple expects strong sales growth
Why it matters:
Apple benefited from strong demand for its iPhone 17 lineup, which helped the company report higher sales across major markets during its latest quarter.
CEO Tim Cook said, “iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment, and Services also achieved an all-time revenue record, up 14 percent from a year ago.”
iPhone sales surged to $85.27 billion in the first quarter from $69.14 billion in the year-ago period, while iPad sales climbed to $8.60 billion from $8.09 billion last year.
Mac sales contracted to $8.39 billion, while sales of wearables, home and accessories slipped to $11.49 billion.
Sales in Greater China sales surged 38% year-over-year to a record high of $25.53 billion. Apple had been facing stiff competition from local companies in China, while having to deal with stricter regulations.
Earlier this month, Apple announced a partnership with Google for using Gemini to improve Siri. The company also announced the acquisition of an AI startup Q.ai for $1.6 billion.
For the second quarter, Apple guided to revenue growth of 13%-16% year-over-year, compared to market estimates of 10%.
Apple's stock rises after excellent quarterly performance
How shares responded:
Apple’s shares rose 0.5% to $259.68 in after-hours trading on Thursday, following the release of quarterly results. The stock has surged around 22% over the past six months.
What to watch:
Investors will continue monitoring the ongoing shortage of memory chips around the world, which could impact the consumer electronics industry. Markets will also watch competition and regulations amid increasing trade tensions among countries.