Apple Earns Surprise by iPhone Sales that Exceeding Expectations

VIVA – Apple surprised the market with better-than-positive results on Thursday, even as it reported a decline in revenues. It said that its overall business had increased and that sales of iPhone had continued to stay solid, exceeding expectations. 

Some parts of Apple’s product line had suffered more, such as its Macs. But they were helped out by newly expanding other products, such as services, which encompasses offerings like its Music streaming service and Apple TV.

The surprisingly strong results saw Apple’s stock go higher in after-hours trading.

The earnings call also saw Tim Cook, Apple’s chief executive, address artificial intelligence. The company has stayed largely quiet about AI – amid rapid expansion at many of its rivals, and questions over whether Apple is doing enough to build it into products such as Siri.

The latest numbers come after the company in February posted its first quarterly revenue drop in nearly four years after pandemic-driven restrictions on its China factories curtailed sales of the latest iPhone during the holiday season.

Apple earned US$ 24.16 billion, or 1.52 dollars per share, in the three-month period that ended April 1. That was down slightly from US$25.01 billion also 1.52 dollars per share, a year earlier.

Revenue fell 3% to US$94.84 billion from US$ 97.28 billion. Analysts, on average, were expecting earnings of 1.43 dollars (£1.14) per share on revenue of US$92.91 billion, according to a poll by FactSet.

Apple said iPhone sales brought in US$ 51.33 billion in revenue in the first quarter.

Analysts had expected US$48.66 billion. Revenue at its main services division was US$20.91 billion, slightly above Wall Street's estimate of US$20.66 billion. The company said its board had also approved a US$90 billion share buyback program and raised its regular quarterly dividend.