Apple Inc. surprised investors with a gain in China revenue for its latest quarter, but disappointed with a decline in overall iPhone sales. The tech giant reported a net income of $19.88 billion, or $1.26 per share, compared to $19.44 billion, or $1.20 per share, in the same period last year. Despite beating the FactSet consensus of $1.20 per share, iPhone sales fell short of expectations.
Apple’s revenue for the quarter fell to $81.80 billion, matching the FactSet consensus. The company reported $39.67 billion in revenue for its iPhone business, down from $40.67 billion the previous year and below the expected $40.24 billion. This decline in iPhone sales caused shares to drop 0.5% in after-hours trading.
The company did not provide guidance in the earnings release, a practice it has followed since the start of the pandemic. However, executives may share some expectations for the current quarter’s performance on the earnings call.
Apple’s revenue for iPads fell to $5.79 billion from $7.22 billion the previous year, below the expected $6.44 billion. Mac revenue also declined to $6.8 billion from $7.38 billion, but exceeded the consensus view of $6.26 billion. The wearables, home, and accessories business generated $8.28 billion, slightly below the expected $8.31 billion.
Services revenue increased to $21.21 billion from $19.60 billion, surpassing analysts’ projections of $20.73 billion. Apple’s revenue from Greater China reached $15.76 billion, exceeding the FactSet consensus of $13.62 billion and up from $14.60 billion the previous year.
Investors will be eagerly awaiting the company’s plans for the upcoming quarter during the earnings call. While iPhone sales may have disappointed, Apple’s revenue from other product categories and services gives hope for future growth.