From CNBC: 2025-01-30 19:54:17

Apple reported a better-than-expected quarter with revenue growing 10% to $124.3 billion and earnings per share increasing 10% to $2.40. Guidance for revenue growth in the March quarter was positive, leading to a 3% rise in shares. The services segment saw a 14% revenue increase with gross margins expanding to 75%. Apple expects total revenue to increase in the low-to-mid-single digits for the next quarter. The company’s net cash neutral strategy involves returning cash to shareholders through dividends and buybacks. Despite challenges in China, Apple outperformed revenue estimates in the Americas, Europe, and Japan. Services revenue is expected to increase in the low double digits year over year. Cook remains optimistic about future sales driven by Apple Intelligence. In the upcoming months, Apple Intelligence will roll out in more languages and features. Apple shares rose over 6% on the potential impact of DeepSeek’s efficient AI model on the company’s hardware and features. The company set a new record for its installed base and paid subscriptions. Cook expects fiscal stimulus in China to be a tailwind in future quarters. Apple’s outlook for the March quarter is optimistic, with expected growth in revenue and services revenue. The company paid $3.9 billion in dividends and repurchased $23.3 billion in shares in the reported quarter. Apple’s dominant hardware and services businesses provide a strong competitive moat and bundling opportunities. Management’s net cash neutral strategy instills confidence in funding dividends and buybacks. The quarter showed mixed results in different product lines, with iPhone revenue dipping but Mac, iPad, and Services revenue growing. Apple’s focus on innovation and efficiency is driving positive outcomes and upgrades in markets with Apple Intelligence.



Read more at CNBC:: Apple proves naysayers wrong once again. Lots to like from Q1 and outlook