Apple earnings results turn into AI lovefest. First the numbers: Apple’s earnings report went about as smoothly as possible for a company that saw its revenue decline by more than $4 billion. Chief Executive Officer Tim Cook and Chief Financial Officer Luca Maestri seem to have sold Wall Street on the idea that iPhone sales in the period would have grown if not for a $5 billion headwind stemming from pent-up demand for the iPhone 14 Pro in the same quarter of last year (in other words, a tough year-over-year comparison).
Sales of the iPad declined, but that wasn’t a shock given the lack of recent updates. It’s perhaps more troubling that revenue from the Wearables, Home and Accessories business was worse than anticipated, considering the Vision Pro launched during the quarter. Services and the Mac division, meanwhile, both grew more than expected. In China, the situation is a little more puzzling. Apple says that iPhone revenue was up in mainland China, but research firms like Counterpoint have been saying for weeks that demand for the device is cratering there…Read More