Apple Shares Surge as Positive Sales Outlook Sparks iPhone Recovery Momentum!

"Apple Shares Rise on Strong iPhone Sales Outlook!"

Apple shares rose after forecasting higher sales than expected, driven by anticipated iPhone recovery and strong sales of iPads and Macs.

Rachel Patel6 hours agoLast Update : 6 hours ago

finance.yahoo.com

Apple shares rose 3.14% in after-market trading on January 30, 2025, following the company’s forecast of higher sales than analysts expected. This positive outlook suggests a potential recovery in iPhone sales as Apple integrates new artificial intelligence features into its products.

6 Key Takeaways

Apple shares rose after positive sales forecast
iPhone sales expected to recover with AI features
China revenue declined due to competition
Mac and iPad sales exceeded analyst expectations
Services business grew significantly year-over-year
Apple Intelligence rollout faces regulatory delays

Fast Answer: Apple shares increased 3.14% after the company projected sales growth exceeding analyst expectations. For the current quarter, Apple anticipates low- to mid-single-digit sales growth, with total sales for the fiscal first quarter reaching $124.30 billion, surpassing Wall Street’s target.

Apple’s recent forecast indicates that sales for the current quarter are expected to rise in the low- to mid-single-digit range. This projection comes after a fiscal first quarter where total sales reached $124.30 billion, slightly above the $124.12 billion expected by analysts. The company’s earnings per share also exceeded expectations at $2.40, compared to the consensus target of $2.35.

Key financial highlights include:

iPhone sales for the last quarter were $69.14 billion, below the expected $71.03 billion.
Greater China sales dropped to $18.51 billion, falling short of both last year’s $20.82 billion and analyst expectations of $21.33 billion.
Sales from iPads and Macs were stronger, contributing to overall profit despite challenges in the iPhone segment.

Apple’s Chief Financial Officer, Kevan Parekh, indicated that gross margins for the current quarter are projected between 46.5% and 47.5%, surpassing analyst estimates. CEO Tim Cook noted that the rollout of AI features, branded as Apple Intelligence, is positively impacting sales, particularly in markets where these features are available. However, the company has yet to establish a local partner in China for these features, which may affect future sales in that region.

Notice: Canadian consumers should be aware that Apple’s AI features may not be available in Canada until further regulatory approvals are secured, similar to the situation in China.

In summary, Apple’s optimistic sales forecast and the introduction of AI features signal potential recovery in iPhone sales, despite recent challenges in key markets. The company’s diversified product lineup and strong performance in other segments may help offset the decline in iPhone revenue.