Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

An iPhone being used to pay with Apple Pay. Photo: Apple

Apple reported quarterly financial results Tuesday that narrowly beat the expectations set when Apple issued a rare earnings warning at the beginning of the month. However, its outlook for the current quarter was even more disappointing than some analysts were anticipating.

Why it matters: Apple's warning sent shock waves through the financial world, both for what it meant for smartphone demand as well as business in China, which Apple singled out as responsible for much of the revenue shortfall.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” Apple CEO Tim Cook said in a statement.

By the numbers:

  • Earnings per share: $4.18, a penny ahead of most consensus estimates.
  • Revenue: $84.3 billion, just ahead of where Apple warned and what most analysts were projecting.
  • iPhone revenue: $51.9 billion, down 15% year-over-year. In addition to weakness in China, Apple blamed slower upgrade rates. "Our customers are holding on to their iPhones a bit longer than in the past," Cook said on a call with investors.
  • All other products and services, up 19%.
  • Services revenue $10.9 billion, an all-time high and up 19% year-over-year. Gross margins in that business (disclosed for the first time) were 62.8%, well ahead of the rest of Apple's business.
  • Greater China revenue was $13.2 billion, down 27% from a year earlier.
  • Outlook: Apple said revenue for the current quarter should be between $55 billion and $59 billion, less than many analysts were forecasting. It said gross margin should be between 37% and 38%.

This was also the first quarter in which Apple didn't break out unit sales of iPhone, iPad and Macs.

Stock up: Investors seemed cheered things weren't worse, sending shares higher in after-hours trading. Apple's stock changed hands recently at $160.14, up $5.46, or 3.5%.

Upbeat note: Cook expressed long-term optimism over Apple's business promising "some exciting announcements later this year" without providing specifics. "Apple innovates like no other company on earth and we are not taking our foot off the gas," Cook said.

Go deeper

Senate Democrats reach deal on extending unemployment insurance

Photo: Alex Wong/Getty Images

Senate Democrats struck a deal Friday evening to extend unemployment insurance in President Biden's $1.9 trillion COVID-19 relief package after deliberating and halting other action for roughly nine hours, per a Senate aide.

Why it matters: The Senate can now resume voting on other amendments to the broader rescue bill.

Capitol review panel recommends more police, mobile fencing

Photo: Olivier Douliery/AFP via Getty Images

A panel appointed by Congress to review security measures at the Capitol is recommending several changes, including mobile fencing and a bigger Capitol police force, to safeguard the area after a riotous mob breached the building on Jan. 6.

Why it matters: Law enforcement officials have warned there could be new plots to attack the area and target lawmakers, including during a speech President Biden is expected to give to a joint session of Congress.

Financial fallout from the Texas deep freeze

Illustration: Annelise Capossela/Axios

Texas has thawed out after an Arctic freeze last month threw the state into a power crisis. But the financial turmoil from power grid shock is just starting to take shape.

Why it matters: In total, electricity companies are billions of dollars short on the post-storm payments they now owe to the state's grid operator. There's no clear path for how they will pay — something being watched closely across the country as extreme weather events become more common.