'Better than feared': Apple’s earnings beat appeases Wall Street despite iPhone sales miss
Published On Jan 31, 2025, 9:53 AM
Apple reported earnings per share of $2.40, slightly exceeding analysts' expectations of $2.35. The company's revenue was $124.3 billion, also above the expected $124.1 billion, even as iPhone sales in China fell 11%. CEO Tim Cook explained that much of this decline was due to a deliberate decrease in iPhone shipments to partners rather than weak demand. Analysts from firms like JPMorgan and Citi responded positively, with some raising their price targets for Apple's stock, citing strong performance and potential boosts from AI features. However, other analysts remain cautious, concerned about the sustainability of the current upgrade cycle for iPhones.
Stock Forecasts
AAPL
Positive
Despite a missed expectation in iPhone sales, the strong earnings report and management's clarifications about inventory strategies seem to have calmed investors. The growing speculation around Apple's AI initiatives and their long-term strategic importance could lead to increased sales and customer upgrades in the future. Analysts optimistic about Apple's positioning in the AI landscape see potential for growth, which may be reflected in stock performance.
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