Hot off its historic jump to a $4 trillion market cap, Apple delivered an earnings beat after the closing bell — but its struggles in China continue.
While Apple’s revenue grew 8% year over year to $102.5 billion, beating estimates, and EPS grew 13% year over year to $1.85, sales in China decreased from the year-ago period, missing estimates.
Apple’s cash cow, the iPhone, generated $49.02 billion in revenue, slightly missing Wall Street’s estimates of $49.33 billion.
The stock dipped 3% immediately following the results before ticking up 5% after hours.
In a call with analysts, Apple said it planned to increase its capex spending in the holiday quarter, driven by expanding AI investments — a theme in Big Tech earnings this quarter.
“We are increasing our investments in AI while also continuing to invest in our product road map,” CFO Kevan Parekh said.
CEO Tim Cook said he expected China revenue to return to growth in the holiday quarter, and that a supply constraint drove the 4% year-over-year decline in the region.
Cook said Apple is “making good progress” on its overhauled Siri, which has faced delays, and he expects it to launch next year.
The iPhone 17, which had only had about a week of sales recorded in the quarterly numbers released, is “resonating around the world,” Cook said.
Looking to the holiday quarter, Apple’s CFO said the company expects total revenue to increase 10-12% year over year — higher than Wall Street analysts expected — and iPhone sales to grow double digits. If those growth projections hold, Apple’s CFO said it would be “our best quarter ever.”
Catch up on what Apple discussed on its earnings call below:
