Apple posted a 4% rise in revenue for its fiscal Q1, with its Services division driving growth despite underwhelming iPhone sales and an 11.1% decline in China revenue. The company’s shares gained 3% in after-hours trading following a positive outlook for the March quarter.
Financial Performance
- Revenue: $124.3 billion (beat expectations)
- Earnings per Share: $2.40 (exceeding $2.35 forecast)
- Gross Margin: 46.9% (highest recorded)
- Services Revenue: $26.34 billion (up 14%)
The iPhone 16 family struggled in non-AI-supported markets, contributing to Apple’s first significant miss in two years. However, Cook announced plans to expand Apple Intelligence into new regions, including China, by April. Meanwhile, Mac and iPad sales grew 15% each due to successful product launches.
Apple also highlighted its robust ecosystem, with 2.35 billion active devices globally, and announced $30 billion in shareholder returns for the quarter.
