A 10% decrease in iPhone sales may pose a concern for Apple, considering the significant role these devices play in driving half of the company’s revenue.
Despite this news, investors appeared unfazed on Thursday when Apple disclosed the decline in its fiscal second-quarter earnings report. Following the announcement, the stock surged over 6% after the market closed, marking the most substantial increase since November 2022 if this positive trend continues in regular trading on Friday.
Rather than fixating solely on the decline in iPhone sales, Wall Street opted to accentuate the positive aspects. Apple’s gross margin saw an expansion to 46.6%, showcasing a sustained upward trend, attributable to the growth of its services business that yields robust profits.
Moreover, Apple indicated that overall revenue growth in the current quarter is expected to be in the low single digits, following a 4% dip in the preceding period. Analysts had anticipated third-quarter growth of 1.3%, based on LSEG estimates.
Gene Munster from Deepwater Asset Management characterized this guidance as a “relief,” considering the recent trajectory of Apple’s business.
Source (CNBC)
