Apple Beats Q3 Expectations Despite Iphone Sales Decline

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Amara

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Jul 18, 2024
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Apple (AAPL) surpassed analysts expectations for the third quarter, reporting an EPS of $1.40 on revenue of $85.5 billion, compared to the anticipated $1.35 EPS and $84.4 billion revenue.

However, iPhone sales declined year-over-year, totaling $39.2 billion, short of last year's $39.6 billion.

China Market Performance
Despite challenges in China, revenue from the region reached $14.7 billion, falling short of the projected $15.2 billion and last year's $15.7 billion.

CFO Luca Maestri noted improvements and record upgrades in China, with better performance than the first half of the year.

Segment Revenue Highlights

Services: $24.2 billion (vs. $23.9 billion expected)

iPad: $7.1 billion (vs. $6.6 billion expected)

Mac: $7 billion (up from $6.8 billion last year)

Wearables: $8 billion (down from $8.2 billion last year)

Stock Performance and Future Plans
Apple's shares have risen by 18.6% year-to-date. The company is preparing to launch its Apple Intelligence software, incorporating generative AI, in October.

Analyst Opinions
Analysts are divided on the impact of Apple Intelligence on future iPhone sales, with some predicting a boost and others more cautious.

Apple Inc. (AAPL)

Current Price: $218.36 (-1.68%)
Pre-market: $217.02 (-0.61%)