Apple delivered the goods in its holiday quarter, ringing up billions more than expected in global iPhone sales and in its China business, while beefing up its already impressive profit margins and boasting more than 2.5 billion active Apple devices worldwide.
It was a reminder of CEO Tim Cook’s unparalleled mastery of the controls that keep the $3.8 trillion company humming.
But it was also a reminder of the challenges Apple faces, and the limits of the company’s leadership in a changing market. Apple proved once again that it can build, ship, and sell hardware better than anyone on the planet, especially when supply chains are under pressure. When it comes to a vision for AI however, Apple, and Cook, had shockingly little to say.
Result: Despite the blowout quarter, Apple’s stock floundered, gaining a scant 0.2% in after-hours trading.
Starting with the good, Apple’s fiscal first-quarter results were sterling. Revenue of $143.8 billion was up 16% year over year and well above the $138.5 billion expected by analysts. Net income increased 16% to $42.1 billion, or $2.84 per share, versus the $2.67 per share expected by analysts.
