"Something odd happened. Apple Inc. ( NASDAQ: AAPL) turned in what many described as a spectacular quarter. The share price did not rise at all. In fact, it is down 5% this year, while the S&P 500 is up slightly less than 2%. Over the past year, Apple stock is up 8%, and the S&P 500 is 15% higher. The market appears to care more about Apple's costs and lack of an artificial intelligence (AI) product than an iPhone home run."
"Revenue for the most recent quarter hit $143.8 billion, up 16%, and per-share earnings rose 19% to $2.84. iPhone revenue rose to $85.2 billion from $69.1 billion in the same quarter a year ago. China has been a problem-until now. Greater China revenue was $25.5 billion, up from $18.5 billion. Apple is taking market share from well-entrenched local manufacturers (some of which have AI in their operating systems)."
"People apparently forgot that stocks are bought and sold on belief about their futures and not the past. Hardware costs across much of the tech industry have risen because too many successful tech firms need hardware right away. Lingering in the back of investors' minds is whether consumers will expect AI features in the next upgrade of iOS, which is still a few months away. Management did not spend much time on that future."
Apple reported revenue of $143.8 billion, up 16%, and EPS of $2.84, up 19%, driven by iPhone revenue rising to $85.2 billion from $69.1 billion year-over-year. Greater China revenue improved to $25.5 billion from $18.5 billion as Apple gained market share from established local manufacturers, some offering AI features. Investors focused on higher component and memory costs that pressured margins, and concern about the absence of a consumer-facing AI product weighed on the stock. Hardware costs have risen across the tech industry as companies scramble to secure components. Microsoft faced similar margin pressure in Azure despite AI revenue.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]