Apple revenues beat forecasts for Q1, coming in at $119.6bn, led by the iPhone which saw revenue of $69.7bn.
Apple’s results were, however, marred last quarter by regional revenue from China, Greater China revenue came in well short of forecasts at $20.8bn, indicating that the squeeze on sales is starting to have an effect.
Apple management seems concerned that’s going to continue, as this quarter is expected to be similar to last year.
Elsewhere in the business, iPad revenues hit $7bn, Mac revenues were at $7.8bn, and wearables hit $12bn, falling slightly short of forecasts. Services were also short of forecast at $23.1bn
Michael Hewson of CMC Markets says:
“The next few months are likely to be challenging for Apple having to deal with regulatory issues in Europe over its App Store, while its Watch has been the subject of issues with respect to its blood oxygen feature.”
“The launch of the Vision Pro at $3,500 is unlikely to shift the dial when it comes to sales given how costly it is. Apple is launching some new iPads which may prompt an uptick in sales in this area over the next quarter, but the iPhone remains its key revenue earner so the slowdown in China will be a concern, however the Indian market could offer a way out on this front.”
Stock is down around 2.8% in premarket trade.