Apple offers modest growth outlook after iPhone sales help beat profit expectations | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 24, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 24, 2025
Apple offers modest growth outlook after iPhone sales help beat profit expectations

World+Biz

Reuters
01 November, 2024, 05:15 pm
Last modified: 01 November, 2024, 05:22 pm

Related News

  • Apple inks $500 million rare earth magnet deal to bring supply back to US
  • Apple takes fight against $587 million EU antitrust fine to court
  • FaceTime in iOS 26 will pause video calls if sensitive content detected
  • Apple sued by shareholders for allegedly overstating AI progress
  • Foxconn sends 97% of India iPhone exports to US as Apple tackles Trump's tariffs

Apple offers modest growth outlook after iPhone sales help beat profit expectations

Fourth-quarter sales of Apple's iPhone, the company's main product, were up 5.5% to $46.22 billion, compared with analyst estimates of $45.47 billion

Reuters
01 November, 2024, 05:15 pm
Last modified: 01 November, 2024, 05:22 pm
A staff member attends to customers as the new iPhone 16 series go on sale at an Apple store in Beijing, China September 20, 2024. REUTERS
A staff member attends to customers as the new iPhone 16 series go on sale at an Apple store in Beijing, China September 20, 2024. REUTERS
  • Early iPhone 16 sales grew faster than iPhone 15 sales, says CEO Tim Cook
  • Apple's AI strategy includes new iPhone 16 features
  • Apple's services, Mac, iPad, and wearables sales missed analyst expectations
  • Payments for property and equipment rise $2.91 billion from previous quarter

Apple's (AAPL.O) AI-enhanced iPhone made a strong start, pushing quarterly sales ahead of Wall Street expectations, but a modest revenue forecast raised questions about whether that momentum will hold over the holiday sales season.

A decline in China sales during the fourth quarter also concerned some analysts and investors, helping send shares down 1.4% in after-hours trade, despite surprisingly large overall profit and revenue in that period.

Chief Financial Officer Luca Maestri told analysts during a conference call that Apple expects overall revenue to "grow low to mid single digits" during its fiscal first quarter, which ends in December. Analysts had expected revenue growth of 6.65% to $127.53 billion during the quarter, according to LSEG data.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Apple did say it expects double-digit growth in its services business in its first quarter, leading some analysts to ask executives during a call if overall hardware revenue might decline.

Executives did not address that question, or give any indication of how the iPhone might fare, including in China, where Apple's new AI features are not available. Apple has not said when they will be available.

Prior to management's call with analysts, Tom Forte, an analyst at Maxim Group, attributed Apple's share drop to fourth-quarter China sales coming in below expectations.

"We see the potential for sustained weakness in China," he said.

Apple said overall fourth-quarter sales were $94.93 billion, ahead of Wall Street targets of $94.58 billion, according to LSEG. Earnings of $1.64 per share, excluding a massive one-time tax charge in the European Union, topped analyst expectations of $1.60 per share.

Fourth-quarter sales of Apple's iPhone, the company's main product, were up 5.5% to $46.22 billion, compared with analyst estimates of $45.47 billion. Other product lines missed expectations.

Apple's fourth quarter ended on 28 September, meaning it reflects only a few days of sales of its iPhone 16 series which went on sale on 20 September. Apple Chief Executive Tim Cook told Reuters that iPhone 16 sales grew faster than iPhone 15 sales did a year earlier, with both phones on sale for the same number of days in the fourth quarter.

Cook also said Apple customers are downloading a new version of its iPhone operating system with what it calls Apple Intelligence features at twice the rate they had the year before.

"We've had great feedback from customers and developers already," Cook said. "We're off to a good start."

AI strategy

The rollout of Apple's artificial intelligence strategy, which it revealed this year, hinges on how well its new phones sell.

Rather than introduce AI in a standalone app or service, Apple has sprinkled Apple Intelligence throughout its most recent operating systems as new features, such as the ability to help re-write an email in a more professional tone. Those features will mostly be available on iPhone 16 models, which feature more powerful computing chips, although the pro versions of the iPhone 15 both work with Apple Intelligence.

While some of those Apple Intelligence features arrived this week, others have been delayed, which has led some Wall Street analysts to wonder whether consumers will be slower to upgrade their devices this year while flagship software features trickle out.

Apple's rivals Microsoft (MSFT.O) and Meta (META.O) both said this week they expect continued increases in spending to support their AI strategies. Apple said payments for property and equipment - a measure of its capital expenditures - were up $2.91 billion from the previous quarter to $9.45 billion.

Apple's lower spending comes in part because it uses third-party data centres for some AI work. Some aspects of Apple Intelligence do rely on Apple's own data centres, but the company is using its own in-house chips to power those features.

"There would be some (financial) benefit to us by using our own silicon, obviously, but that's not the reason we're doing it. We're doing it because we can provide the same standard of privacy and security that we can provide on device," Cook said.

Sales in Apple's services business, which includes iCloud storage and Apple Music, were $24.97 billion, compared with analyst expectations of $25.28 billion, according to LSEG.

Mac and iPad sales were $7.74 billion and $6.95 billion, respectively, compared to estimates of $7.82 billion and $7.09 billion, according to LSEG data.

Sales in Apple's home and wearables business, which includes its Apple Watch and AirPods devices, fell to $9.04 billion, compared with estimates of $9.2 billion, according to LSEG.

Earnings per share were 97 cents including the charge related to a one-time multi-billion-euro European tax payment.

Top News

Apple / iPhone / growth / Sales

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • A file photo of former prime minister Sheikh Hasina. Photo: Collected
    Al Jazeera investigation: Hasina, in call with Taposh, talks using helicopter to shoot, crush protesters in July Uprising
  • He was produced before the Dhaka Chief Metropolitan Magistrate Court at around 7:45pm today (24 July). Photo: TBS
    Ex-CJ Khairul, who armed Hasina to kill polls time caretaker govt, lands in jail
  • Representational image. Photo: Collected
    Tariff issue: Bangladesh, US set for crucial virtual meeting on 29 July - not tommorow

MOST VIEWED

  • Photo: Collected
    Bangladeshi man jailed for life in UK for murdering wife in front of their baby
  • Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
    Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
  • Fire at Cosmo School in Mirpur on 23 July 2025. Photo: TBS
    Fire breaks out at Cosmo School in Mirpur following generator explosion
  • Representational image. File Photo: Rajib Dhar/TBS
    Debate arises as edu adviser says postponed HSC exams of 22 and 24 July will be held on same day
  • BB issues dress code for all, discourages short-sleeved or length dresses, leggings for female staff
    BB issues dress code for all, discourages short-sleeved or length dresses, leggings for female staff
  • Infographics: TBS
    Stay orders won’t shield defaulters: BB governor 

Related News

  • Apple inks $500 million rare earth magnet deal to bring supply back to US
  • Apple takes fight against $587 million EU antitrust fine to court
  • FaceTime in iOS 26 will pause video calls if sensitive content detected
  • Apple sued by shareholders for allegedly overstating AI progress
  • Foxconn sends 97% of India iPhone exports to US as Apple tackles Trump's tariffs

Features

Photo: Collected

24 July: More than 1400 arrested, 3 missing coordinators found

20h | Panorama
Photo: Mehedi Hasan/TBS

Aggrieved nation left with questions as citizens rally to help at burn institute

2d | Panorama
Photo: Mehedi Hasan/TBS

Mourning turns into outrage as Milestone students seek truth and justice

1d | Panorama
Illustration: TBS

Uttara, Jatrabari, Savar and more: The killing fields that ran red with July martyrs’ blood

2d | Panorama

More Videos from TBS

AI is uncovering the lost history of ancient Rome

AI is uncovering the lost history of ancient Rome

1h | Others
Jamaat Ameer's statement misleading: Chatra Dal general secretary

Jamaat Ameer's statement misleading: Chatra Dal general secretary

2h | TBS Today
Dollar gets upward push as BB buys $10m more in auction at even higher rate

Dollar gets upward push as BB buys $10m more in auction at even higher rate

3h | TBS Insight
Why is Korniya called the Jamdani Sari girl?

Why is Korniya called the Jamdani Sari girl?

1h | TBS Programs
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net