Apple’s revenues exceeded forecasts for the first quarter, coming in at $119.6 billion, led by the iPhone which recorded revenue of $69.7 billion.
Apple’s results, however, were marred last quarter by regional revenue from China, with revenue from Greater China falling well short of forecasts at $20.8 billion, indicating that sales compression is beginning to have an effect.
Apple management seems concerned about this situation, as this quarter is expected to be similar to last year.
Elsewhere in the industry, iPad revenue hit $7 billion, Mac revenue hit $7.8 billion, and wearable revenue hit $12 billion, slightly below forecasts. Services also fell short of forecasts at $23.1 billion
Michael Hewson of CMC Markets says:
“The next few months are likely to be difficult for Apple, which faces regulatory issues in Europe regarding its App Store, while its watch has faced problems regarding its blood oxygen function .”
“The launch of the $3,500 Vision Pro is unlikely to be a sales game-changer given its cost. Apple is launching new iPads, which could lead to higher sales in this area in the next quarter, but the iPhone remains its main source of revenue, so the slowdown in China will be a concern, but the Indian market could offer a way out on that front.”
The stock is down about 2.8% in premarket trading.
