Apple earnings up despite China weakness, sees strong holiday growth
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Apple CEO Tim Cook holds up the iPhone 17 Pro at its September launch event. Photo: Justin Sullivan/Getty Images
Apple on Thursday reported earnings slightly ahead of analysts' expectations despite continued weakness in Greater China, and forecast strong growth this holiday season.
Why it matters: The iPhone maker is huge on its own, but its results are also key to a host of suppliers and partners through the tech industry.
- CEO Tim Cook noted the company was facing supply constraints, in fact, amid "very strong demand."
Driving the news: Apple reported earnings of $27.5 billion, or $1.85 per share, on revenue of nearly $102.5 billion. That compares with analysts estimates of $102.2 billion and per-share earnings of $1.77, per CNBC, citing LSEG.
By the numbers: Here's how that revenue breaks down by product and geography.
- iPhone: $49 billion
- iPad: $6.9 billion
- Mac: $8.7 billion
- Services: $28.7 billion
- Accessories and wearables: $9 billion
Between the lines: On a regional basis, Greater China was the only geographic segment to see a year-over-year decline.
- Americas: $44.2 billion
- Europe: $28.7 billion
- Japan: $6.6 billion
- Greater China: $14.5 billion
What they're saying: Cook predicted a strong holiday season.
- "We expect the December quarter's revenue to be the best ever for the company and the best ever for iPhone," he said on a conference call with analysts.
- Thomas Monteiro, senior analyst at Investing.com, said that tariffs dented Apple's margins, but strength in services helped the company overcome slightly lower-than-expected iPhone sales.
- "While the market remains fixated on AI adoption and monetization, Apple proves that the old recipe still works—at least for another quarter," Monteiro said in a statement.
What to watch: Apple CFO Kevan Parekh said to expect revenue in the December quarter (Apple's fiscal first quarter) up 10%-12% from a year ago, with iPhone sales expected to grow double digits compared to last year.
- Analysts were expecting revenue growth of about 6% in the December quarter, per estimates from FactSet.
- Parekh said to expect gross margins of 47% to 48%, with $1.4 billion in tariff-related costs.
Cook also sounded a bullish note on China, saying iPhone 17 demand was strong there and adding: "We do believe we will return to growth in Q1."
Editor's note: This story has been updated with additional comments from the company.
