• Advertise
  • Contact Us
  • Daily The Business
  • Privacy Policy
Friday, May 9, 2025
Daily The Business
  • Login
No Result
View All Result
DTB
No Result
View All Result
DTB

Apple shares rise after positive sales outlook signals iPhone recovery – Markets

February 3, 2025
in Business
Apple shares rise after positive sales outlook signals iPhone recovery - Markets
Share on FacebookShare on TwitterWhatsapp

Apple executives on Thursday forecast relatively strong sales growth, a sign the company will recover from a dip in iPhone sales as it rolls out artificial intelligence features.

The forecast comes after Apple delivered a slight drop in iPhone revenues for the holiday shopping quarter and lagged Wall Street estimates, hampered by a lack in some markets of artificial intelligence features meant to be the chief selling point of its latest devices.

Apple Chief Executive Tim Cook said those features will reach more users in Europe this spring, and shares rose 3.14% in post-market trade.

Apple has approached AI more cautiously than many of its peers, eschewing the huge data center spending of rivals such as Microsoft and instead envisioning AI as features meant to help sell its latest hardware.

That approach paid off earlier this week when China’s DeepSeek unveiled free AI technology that sparked fears of price wars, sank stocks of some of Apple’s competitors and sent shares of the iPhone maker up slightly.

Despite the AI rollout stumbles, Apple’s overall sales and profits were boosted by stronger-than-expected sales in its fiscal first quarter of iPads and Macs, where new chips helped persuade customers to upgrade.

And Chief Financial Officer Kevan Parekh gave a rosier outlook for the current fiscal second quarter, saying the company expects sales to rise in the low- to mid-single digit range, after accounting for a negative 2.5 percentage point impact from a strong dollar.

“The guidance management provided on the call exceeded expectations, as the iPhone gains momentum and Apple gets past a tough quarter in China,” said Gil Luria, managing director at D.A. Davidson.

In the just-ended quarter, iPhone sales dropped slightly to $69.14 billion, compared with the $71.03 billion that analysts were expecting, according to LSEG data. Greater China sales dropped to $18.51 billion, compared with $20.82 billion a year earlier and below the $21.33 billion that a Visible Alpha survey of five analysts expected.

Total sales of $124.30 billion for the fiscal first quarter ended Dec. 28 inched past Wall Street’s target of $124.12 billion, according to LSEG, while earnings per share of $2.40 comfortably beat the consensus target of $2.35.

The iPhone maker has positioned AI as a set of new capabilities and features such as drafting emails and transcribing phone calls, but the company is rolling the features out over time and has not yet secured a local partner in China to release them.

In an interview, Apple CEO Tim Cook said AI features, called Apple Intelligence, are driving sales of the company’s new devices.

“We saw that in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available,” Cook said.

While Cook said Apple Intelligence is coming in new languages such as French and German in April, he said there is no timeline for when it will become available in China.

Chinese state-linked accounts hyped DeepSeek AI launch ahead of US stock rout, Graphika says

“We continue to work with the regulators and will release it as soon as we can,” Cook said.

Cook told Reuters that about half of Apple’s 11% decline in China revenues was attributable to changes in how much inventory the company’s resellers held.

Mac sales during the last quarter benefited from a new lineup of Mac Minis, iMacs and MacBook Pros with a new M4 chip. Apple Intelligence features are more widely available on Apple’s Macs and iPads because their larger size means they have more powerful chips.

“The silicon makes it perfect for running AI workloads, and so I assume that that’s a very key compelling reason for people to upgrade,” Cook said.

Apple’s Mac and iPad sales hit $8.99 billion and $8.09 billion respectively, above estimates of $7.96 billion and $7.32 billion, according to LSEG data.

Apple said its services business, which includes iCloud storage and its streaming music and video services, hit $26.34 billion in sales, up 13.9% from the previous year and above estimates of $26.09 billion, according to LSEG data.

“While the company’s cautious approach to AI rollout has drawn criticism, robust services growth and ecosystem expansion are providing crucial momentum to help ease its continued iPhone struggles in China,” said Emarketer analyst Jacob Bourne.

The firm’s wearables segment, which includes the Apple Watch and AirPods lines, had $11.75 billion in sales, compared with analyst expectations of $12.01 billion, according to LSEG data.

Apple executives on Thursday forecast relatively strong sales growth, a sign the company will recover from a dip in iPhone sales as it rolls out artificial intelligence features.

The forecast comes after Apple delivered a slight drop in iPhone revenues for the holiday shopping quarter and lagged Wall Street estimates, hampered by a lack in some markets of artificial intelligence features meant to be the chief selling point of its latest devices.

Apple Chief Executive Tim Cook said those features will reach more users in Europe this spring, and shares rose 3.14% in post-market trade.

Apple has approached AI more cautiously than many of its peers, eschewing the huge data center spending of rivals such as Microsoft and instead envisioning AI as features meant to help sell its latest hardware.

That approach paid off earlier this week when China’s DeepSeek unveiled free AI technology that sparked fears of price wars, sank stocks of some of Apple’s competitors and sent shares of the iPhone maker up slightly.

Despite the AI rollout stumbles, Apple’s overall sales and profits were boosted by stronger-than-expected sales in its fiscal first quarter of iPads and Macs, where new chips helped persuade customers to upgrade.

And Chief Financial Officer Kevan Parekh gave a rosier outlook for the current fiscal second quarter, saying the company expects sales to rise in the low- to mid-single digit range, after accounting for a negative 2.5 percentage point impact from a strong dollar.

“The guidance management provided on the call exceeded expectations, as the iPhone gains momentum and Apple gets past a tough quarter in China,” said Gil Luria, managing director at D.A. Davidson.

In the just-ended quarter, iPhone sales dropped slightly to $69.14 billion, compared with the $71.03 billion that analysts were expecting, according to LSEG data. Greater China sales dropped to $18.51 billion, compared with $20.82 billion a year earlier and below the $21.33 billion that a Visible Alpha survey of five analysts expected.

Total sales of $124.30 billion for the fiscal first quarter ended Dec. 28 inched past Wall Street’s target of $124.12 billion, according to LSEG, while earnings per share of $2.40 comfortably beat the consensus target of $2.35.

The iPhone maker has positioned AI as a set of new capabilities and features such as drafting emails and transcribing phone calls, but the company is rolling the features out over time and has not yet secured a local partner in China to release them.

In an interview, Apple CEO Tim Cook said AI features, called Apple Intelligence, are driving sales of the company’s new devices.

“We saw that in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available,” Cook said.

While Cook said Apple Intelligence is coming in new languages such as French and German in April, he said there is no timeline for when it will become available in China.

Chinese state-linked accounts hyped DeepSeek AI launch ahead of US stock rout, Graphika says

“We continue to work with the regulators and will release it as soon as we can,” Cook said.

Cook told Reuters that about half of Apple’s 11% decline in China revenues was attributable to changes in how much inventory the company’s resellers held.

Mac sales during the last quarter benefited from a new lineup of Mac Minis, iMacs and MacBook Pros with a new M4 chip. Apple Intelligence features are more widely available on Apple’s Macs and iPads because their larger size means they have more powerful chips.

“The silicon makes it perfect for running AI workloads, and so I assume that that’s a very key compelling reason for people to upgrade,” Cook said.

Apple’s Mac and iPad sales hit $8.99 billion and $8.09 billion respectively, above estimates of $7.96 billion and $7.32 billion, according to LSEG data.

Apple said its services business, which includes iCloud storage and its streaming music and video services, hit $26.34 billion in sales, up 13.9% from the previous year and above estimates of $26.09 billion, according to LSEG data.

“While the company’s cautious approach to AI rollout has drawn criticism, robust services growth and ecosystem expansion are providing crucial momentum to help ease its continued iPhone struggles in China,” said Emarketer analyst Jacob Bourne.

The firm’s wearables segment, which includes the Apple Watch and AirPods lines, had $11.75 billion in sales, compared with analyst expectations of $12.01 billion, according to LSEG data.

Tags: Appleapple ceo tim cookApple iPhonesMacbook
Share15Tweet10Send
Previous Post

Gold hits record high as Trump tariff worries mount

Next Post

Investigators seek to salvage aircraft after deadly Washington crash

Related Posts

Pakistan rupee depreciates further against US dollar - Markets
Business

Pakistan rupee depreciates further against US dollar – Markets

May 9, 2025
China April crude oil imports up 7.5% on strong inflows of Iran, Russia supplies - Markets
Business

China April crude oil imports up 7.5% on strong inflows of Iran, Russia supplies – Markets

May 9, 2025
Copper-coated wires: New customs values fixed - Business & Finance
Business

Copper-coated wires: New customs values fixed – Business & Finance

May 9, 2025
Join the AUXSOL Installer Program A Game Changer for Solar Professionals!
Business

Join the AUXSOL Installer Program A Game Changer for Solar Professionals!

May 9, 2025
125 Fighter Jets from Pakistan and India Battled for Over an Hour
Business

125 Fighter Jets from Pakistan and India Battled for Over an Hour

May 8, 2025
Pakistan rupee slips lower against US dollar - Markets
Business

Pakistan rupee slips lower against US dollar – Markets

May 8, 2025

Popular Post

  • FRSHAR Mail

    FRSHAR Mail set to redefine secure communication, data privacy

    126 shares
    Share 50 Tweet 32
  • How to avoid buyer’s remorse when raising venture capital

    33 shares
    Share 337 Tweet 211
  • Microsoft to pay off cloud industry group to end EU antitrust complaint

    45 shares
    Share 18 Tweet 11
  • Saudi Arabia Launches World’s First Self-Driving Flying Taxi to Transport Hajj Pilgrims

    42 shares
    Share 17 Tweet 11
  • SingTel annual profit more than halves on $2.3bn impairment charge

    42 shares
    Share 17 Tweet 11
American Dollar Exchange Rate
  • Advertise
  • Contact Us
  • Daily The Business
  • Privacy Policy
Write us: info@dailythebusiness.com

© 2021 Daily The Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Need Help? Chat with us
Start a Conversation
Hi! Click one of our member below to chat on WhatsApp
The team typically replies in a few minutes.
DTB
No Result
View All Result
  • Advertise
  • Contact Us
  • Daily The Business
  • Privacy Policy

© 2021 Daily The Business

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.