- Apple relies on iPhone sales for about half of earnings – they were up slightly
- Sales in China – its third biggest market – slumped 13%
- Has been battling Microsoft for world’s biggest company – Apple No1 currently
Apple on Thursday reported sales and profit that beat Wall Street estimates, powered by growth in its iPhone business.
But China sales missed analysts’ targets – and experts said that pushed the share price down mroe than 3 per cent to below $181 at one point in after market trading.
Apple boss Tim Cook also hinted the now-axed blood oxygen feature for Apple Watches was unlikely to return.
A judge ruled Apple had breached a patent from a company called Masimo – and had to stop selling Watches, or remove the feature. It did the latter.
Speaking to CNBC, Cook Apple would not licence the technology – meaning the gadgets will not get the feature unless the tech giantwins an appeal.
The now-axed blood oxygen feature has been credited with saving a woman’s life when she became unresponsive during a flight.
Tim Cook arrives at the AFI Awards Luncheon at Four Seasons Hotel Los Angeles at Beverly Hills on January 12, 2024 in Los Angeles, California.
A federal court banned the import and sales of the Series 9 and Ultra on January 18 due to claims the tech giant copied patented medical technology from the California-based biotech company Massimo
People shop at an Apple store in Brooklyn on February 01, 2024 in New York City
The unnamed British woman, 70, was experiencing shortness of breath on a flight from the UK to Italy on January 9, leading attendants to seek a doctor on board to assist in the emergency.
Cook said Apple would not do a deal with Masimo – so Watches will continue to be sold without the feature.
‘We’re focused on appeal,’ he said. ‘There’s lots of reasons to buy the watch even without the blood oxygen sensor.’
Overall, it was a good day for technology companies. Meta, owner of Facebook and Instagram, smashed expectation – pushing its share price up 12 per cent. Amazon’s stock was up 5.5 per cent after also beating extimates.
Sales of iPhones hit $69.70 billion, growing 6 percent to beat analyst expectations of $67.82 billion, according to LSEG data.
Sales in China were down 13 per cent as Huawei takes more and more market share.
The figures were for the October to December period for Apple – the busiest since it is right after the new iPhone launches and includes holiday sales.
Microsoft in January eclipsed Apple as the world’s most valuable company, with investors viewing Apple as lagging in the artificial-intelligence race between Wall Street’s tech heavyweights.
Apple has been focusing on a new product. It is set to launch its $3,500 Vision Pro – a virutal reality headset. Its early sales will be reported in the company’s next quarter.
Apple this week once again secured the top position on Fortune’s list of the world’s most admired companies, extending its nearly two-decade run in the top spot.
This marks the 17th year in a row that Apple has been recognized for having the best corporate reputation, based on a survey of approximately 3,700 executives, directors and analysts.
The Apple Vision Pro headset is displayed in a showroom on the Apple campus after it’s unveiling on June 5, 2023, in Cupertino, California
Sales slowing in China are the biggest problem for Apple, analysts say. This is happening for two key reasons.
Chinese-based rivals like Huawei are gaining market share there, plus Beijing has limits on government employee use of iPhones.
Meanwhile, Apple is planning to launch its own electric car as early as 2028, according to new reports.
The tech giant had originally intended to create a fully self-driving vehicle as part of a decade-old project dubbed internally as Titan.
But today sources told Bloomberg that the company is working on an EV with more limited features which make it more similar to the current Tesla models available on the market.
