Apple’s earnings top estimates based on strength of iPhone, but sales slow in China

Apple (AAPL) announced its first-quarter earnings after the bell on Thursday, beating analysts’ top and bottom lines expectations on better-than-expected iPhone sales. However, warning signs over its business in China left investors worried about the market that represents about a fifth of Apple’s sales.

For the quarter, Apple saw earnings per share of $119.6 on revenue of $2.18 billion. Analysts were expecting earnings of $2.11 on revenue of $117.9 billion.

Apple reported iPhone sales of $69.7 billion, compared to estimates of $68.6 billion. But sales from China, the company’s third-largest region after North America and Europe, fell short of estimates and reached only $20.8 billion. Wall Street was expecting sales of $23.5 billion.

The company’s stock fell more than 2% in premarket trading on Friday.

Apple is dealing with both the sluggish Chinese economy as well as a resurgent Huawei in the country, which has hurt sales in the region. But strong performance in both North America and Europe helped buoy the company.

“Today Apple is reporting all-time revenue growth in the December quarter led by iPhone sales and Services revenue,” Apple CEO Tim Cook said in a statement.

“We are pleased to announce that our installed base of active devices now exceeds 2.2 billion, reaching an all-time high across all products and geographies.

Apple’s Mac revenue reached $7.8 billion in the first quarter, falling short of analysts’ expectations of $7.9 billion. The company’s iPad revenue also fell below $7 billion. Wall Street was looking for $7.1 billion. This is a huge decline from the $9.4 billion iPad business last year.

According to Bloomberg’s Mark GurmanApple will introduce new iPads and Macs…

Read Complete News ➤

Benefits of eating guava for Americans