Apple earnings beat with $94.93 billion driven by AI iPhones
Apple Inc. surpassed Wall Street’s expectations for its fourth-quarter 2024 earnings, reporting $94.93 billion in revenue, a 6.1% increase from the previous year.
This slightly topped analyst predictions of $94.56 billion.
Earnings per share reached $1.64, higher than last year’s $1.46 and beating estimates of $1.49.
A key driver was iPhone sales, which rose by 5.5% to $46.22 billion, exceeding forecasts of $45.47 billion.
Apple’s AI-enhanced features, including the “Apple Intelligence” software, are limited to its latest iPhone 16 series and select Pro models of the iPhone 15.
While the AI functionalities currently offer basic features like notification summaries, Apple has hinted at further expansions in features and language options, expected to roll out in December.
However, Apple’s Chief Financial Officer, Luca Maestri, signaled a moderate revenue growth outlook for the December-ending quarter, expecting gains in the low to mid-single digits year-over-year, which falls short of Wall Street’s forecast of 6.5% growth, estimated at $127.5 billion.
Apple’s executives, including CEO Tim Cook, did not comment on specific iPhone sales projections for the quarter, particularly regarding China, one of Apple’s core markets, where the AI features are not yet available.
Apple’s sales in China reached $15.03 billion, missing the $16.34 billion analyst forecast.
Following the earnings announcement, Apple’s stock dipped 1.82% to $225.91 and continued to slide 1.86% in after-hours trading to $221.71.
Despite this, Apple’s shares have risen approximately 21.7% over the year.
Investors are watching closely as Apple continues to refine its AI features and manage fluctuating sales, particularly in the competitive Chinese market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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