Apple’s latest financial report indicates a mixed outlook for the company, as disclosed by CEO Tim Cook. The release of the iPhone 17 and iPhone Air has generated significant global interest, contributing to a notable financial performance for the fourth quarter. The company reported revenues of $102.5 billion, an 8% increase compared to the previous year, although iPhone sales, totaling $49 billion, fell slightly short of expectations.
Cook attributed the shortfall in iPhone sales to supply constraints and delayed shipments, particularly to China. Despite this, he maintained that Apple possesses its most robust product lineup ever as it approaches the holiday season, forecasting a potential 12% revenue increase during this period compared to last year. Cook emphasized strong demand for the iPhone 16 and 17 models, despite noting that a balance between supply and demand remains uncertain.
In terms of market performance, initial sales data from Counterpoint indicates that iPhone 17 sales in the U.S. and China are up 14% compared to the same timeframe for the iPhone 16. Cook expressed satisfaction with the reception of the iPhone 17 in China, despite ongoing concerns regarding U.S. tariffs on imports from the region. Apple reported a $1.1 billion impact from tariffs in the last quarter and anticipates an additional $1.4 billion hit during the upcoming holiday quarter.
Additionally, Amazon also reported quarterly results, projecting sales between $206 billion and $213 billion for the current quarter. The company noted a 20% growth in revenue from its Amazon Web Services, with Chief Financial Officer Brian Olsavsky expressing encouragement about the peak season outlook. This growth may present a contrasting scenario for Apple, which faces intensified competition in the cloud computing and AI sectors.
Source: https://www.bbc.com/news/articles/cz6n98exv9zo?at_medium=RSS&at_campaign=rss