Apple’s profits overcame Wall Street, despite iPhone Miss sales

The Wall Street analyst seems to be sighing up apple(Aapl)) The profits of the first quarter won modestly over the expectations of the analysts The company’s interpretation of iPhone sales in China has reduced its fears.

On Thursday, Apple reached $ 2.40 arrow’s profits on revenues of $ 124.3 billion – higher than the share profitability of $ 2.35 and $ 124.1 billion, according to estimates of Bloomberg consensus. Meanwhile, Apple’s iPhone revenues in China decreased by 11 % from the previous year, with China’s total sales decreased more than Wall Street.

But Tim Cook, CEO of Apple, Tim Cook had a reason for this: “(Q) half the retreat that we passed was driven by a change in the stocks of channels from start to the end of the quarter,” he said in the post -ears call with analysts. In other words, the company strategically reduced the amount of iPhone devices that it has shipped to suppliers to Greater China, which means that, on the whole, IPHONE sales in China were not necessarily due to poor demand.

In fact, the opposite said exactly: “(PBUH) is the art of reason that our sales were a little higher than we expected to be at the end of the quarter. And so we finished a little of the thinness than what we expected.”

Jpmorgan (JpmAnalyst Samic Chattage raised its target price on Apple to $ 270 from $ 260, as he repeated the purchase and reference to Cook’s suspension. Shattgi also pointed out that the recent Chinese subsidies announced in late January can support sales in the region.

Cook also said that Apple Intelligence helped to pay a record number of iPhone promotions, indicating that China’s sales may get a boost if the Chinese government agreed to.

City (CATIF Malik also maintained the purchase classification on the arrow, noting that the results were “better than fear”.

He added: “It is important that the AAPL comments indicating the initial areas where the iPhone AI features outperform the other geographical performance should support feelings on the arrow.” Apple shares increased by up to 3 % in early trading on Friday.

Raymond James (RJFSRINI PAJJURI analyst suggested that Apple is in a better position than her wonderful 7 peers to navigate in the artificial intelligence bubble: “We believe that Apple is in a unique position to provide AI’s features on the device given the strength of the ecosystem, devices, and privacy focus.”

“I have the low -needs of CAPEX low needs and provides faster liquefaction capabilities through consumer devices, which we believe make AAPL shares in particular attractive as the discussion surrounding the transformation/return on investment continues.”

The story continues

Large technology shares decreased earlier this week after a model of Chinese artificial intelligence dominated Dibsic in the basis of the logical basis of companies behind hundreds of billions of dollars in capital expenditures related to building the infrastructure of the data center to support artificial intelligence.

Apple, which was a little lagging behind the AI ​​Big Tech race, was more wise with its pocket than its Mag 7 peers.

Cook told analysts: “(F) from Capex’s point of view, we have always taken a wise and deliberate approach to our spending,” Cook told analysts. Apple Stock has risen on Deepseek news, as the model sparked hopes that artificial intelligence applications on the best and cheapest devices that can enhance the use of iPhone.

“Apple’s Applies of Artificial Intelligence are much more than the majority of MAG 7 (or other border models developers),” Morgan Stanley (Ms) Analysts wrote this week.

But Jeffrez (JeffAnalyst Edison Lee, who reduced the Apple classification to a weak performance last week, was more questionable than his peers in Wall Street.

“When artificial intelligence services become attractive to smart phone users are still unclear. Therefore, we still believe that the market expectations of the iPhone upgrade in the next two years are very high.”

Laura Praton is a reporter for Yahoo’s funding. Follow it on Bluesky @laurabratton.bsky.social. Email it on [email protected].

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