Apple reports strong revenue despite iPhone sales decline
While Apple’s iPhone sales dropped last quarter, the tech giant’s services division more than made up for the decline.
The company, which reported results after the market closed on Thursday, said sales grew 3.9 per cent year over year to $124.3bn (£100bn) inline with Wall Street expectations.
Net income rose 7.1 per cent to $36.3bn, surpassing analyst forecasts of $35.6bn.
iPhone sales experienced a slight decline of less than one per cent (0.8 per cent) to $69.1bn.
On the other hand, its services division, which encompasses the App Store, Apple Music and Apple TV, achieved a 14 per cent revenue increase to $36.3bn.
Angelo Zino a CFRA Research analyst said: “We attribute the better results to stellar performance in services, which grew 14% compared to our 12% forecast, while products outside of iPhones exceeded our views”.
Apple’s iPhone sales slide
Despite an 11 per cent tumble in iPhone sales in China, the iPhone’s new AI app, named Apple Intelligence, seems to have gained traction.
Despite this week’s DeepSeek breakthrough that triggered the US tech market on Monday, chief executive Tim Cook remained positive about the new Chinese AI bot.
He said: “I think innovation that drives efficiency is a good thing.”
“That’s what you see in that model”, he added. “Our tight integration of silicon and software will continue to serve us very well.”
iPad and Macbook sales also saw significant growth, with iPad revenue rising 15.2 per cent to $8.1bn, while Macbook revenue increased 15.5 per cent to $9bn.
Apple shares rose by three per cent in after-hours trading to $244.75.
Investors remain optimistic about the tech titan’s artificial intelligence (AI) initiatives, including the rollout of its AI features, such as its enhanced Siri voice assistant and text proofreading tools.