Nasdaq 100: Apple Falls 1.6% After Hours as iPhone Sales Miss Raises Concerns

How Did Apple’s Key Segments Perform? The tech giant reported earnings per share of $2.40, surpassing analyst expectations of $2.35. Revenue came in at $124.30 billion, slightly ahead of the $124.12 billion estimate. However, iPhone revenue totaled $69.14 billion, missing projections of $71.03 billion, marking Apple’s biggest iPhone sales miss in two years.

Mac and iPad segments posted strong gains, with Mac revenue jumping 15% to $8.99 billion, beating estimates of $7.96 billion. iPad revenue also surged 15% to $8.09 billion, exceeding expectations of $7.32 billion. Apple’s Services division, a key profit driver that includes subscriptions and licensing deals, generated $26.34 billion, up 14% from the prior year and ahead of forecasts.

Why Did China Sales Drop Over 11%? Sales in Greater China, including Hong Kong and Taiwan, fell 11.1% to $18.51 billion, the biggest decline since last year’s December quarter. CEO Tim Cook cited three factors impacting performance: inventory adjustments, the lack of Apple Intelligence availability in China, and a post-quarter government subsidy that could aid future sales.

Cook also noted that iPhone demand was stronger in markets where Apple Intelligence had rolled out. Currently, the AI-driven software suite is only available in select English-speaking regions, leaving China without access.

Wearables and Other Products See Weakness Apple’s wearables category, which includes the Apple Watch, AirPods, and Beats products, declined 2% year-over-year to $11.75 billion, slightly below expectations of $12.01 billion. Despite launching new Mac and iPad models, including the iMac, Mac Mini, and MacBook Pro, the company’s “Other Products” segment failed to deliver growth.