Apple reported better-than-expected first quarter results with revenue growth of 2%.
The company reported first quarter earnings of $2.18 a share on revenue of $119.6 billion. Wall Street was expecting Apple to report earnings of $2.10 a share on revenue of $117.9 billion.
Apple CEO Tim Cook said the company saw record services revenue in the quarter powered by iPhone sales. Cook added that "our installed base of active devices has now surpassed 2.2 billion, reaching an all-time high across all products and geographic segments."
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On a conference call with analysts, Cook talked up the Apple Vision Pro launch and said Apple will continue to invest in new technologies. He said:
"We're so focused on pushing technology to its limits as we work to enrich the lives of our users. As we look ahead, we will continue to invest in these and other technologies that will shape the future. That includes artificial intelligence, where we continue to spend a tremendous amount of time and effort and we're excited to share the details of our ongoing work in that space later this year."
Here's the breakdown by product line:
- iPhone sales in the first quarter were $69.7 billion, up from $65.77 billion a year ago.
- Mac sales were $7.78 billion, roughly flat from a year ago.
- iPad sales were $7 billion, well below $9.4 billion a year ago.
- Wearable revenue was $11.95 billion, down from $13.5 billion a year ago.
- Servies revenue was $23.1 billion, up from $20.77 billion a year ago.
Other than the iPhone, Apple's product lines were on par with expectations or below the mark. Apple did have 13 weeks in the first quarter of fiscal 2024 compared to 14 weeks a year ago.
By geography, Apple's China sales were $20.82 billion, down from $23.9 bilion a year ago. Other geographies showed revenue gains.