Apple Q4 sales fall as big drop in Mac, iPad revenue offsets rise in iPhone sales

Published

11 months ago

November 9, 2023

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Appleon Thursday gave a sales forecast for the holiday quarter that missed Wall Street expectations, hurt by weak demand for iPads and wearables, sending its shares down 3.5% in after-hours trading.

Chief ExecutiveTimCookinsisted that the company’s new iPhone 15 models were doing well in China, citing a record September quarter for iPhones in the region and seeking to ease Wall Street worries that Apple was losing market share to a resurgent Huawei and other local smartphone sellers.

On a conference call with analysts, Chief Financial Officer Luca Maestri said sales for the current quarter, when Apple typically has its biggest sales of new iPhone models, will be similar to the previous year. Wall Street was expecting a forecast for sales to rise 4.97% to $122.98 billion.

Apple shares, which have risen 37% so far this year, dropped 3.5% after-hours when the company gave the forecast.

Earlier on Thursday, Apple reported quarterly sales and profit beat Wall Street expectations, helped by an uptick in iPhone sales and a $1 billion boost to services revenue that offset large drops in Mac and iPad sales.

But revenue from China dipped 2.5% and Cook said the company’s new high-end handset models – the iPhone 15 Pro and Pro Max devices – are facing supply constraints.

The Cupertino, California, company has navigated a global smartphone slump better than many of its rivals but faces an uneven economic recovery in China, a key market for Apple.

“While we believe investors should breathe a sigh of relief because sales and profits both exceeded expectations, the upside was small and we were concerned to see weak sales from China,” DA Davidson analyst Tom Forte said.

Apple said sales for the fiscal fourth quarter ended Sept. 30 fell roughly 1% to $89.50 billion but beat analyst estimates of $89.28 billion, according to LSEG data. Net income rose about 11%. Profit per share of $1.46 beat analyst expectations of $1.39 per share, according to LSEG.

Apple is facing tougher competition in the smartphone market this year as Huawei TechnologiesLreturns to the field with new phones powered by Chinese-made chips after being all but shut out of the market for several years by US government trade curbs.

Apple’s sales in China fell to $15.08 billion from $15.47 billion in the fourth quarter a year ago. Apple’s Cook said that after accounting for foreign exchange rates, Apple’s business in China grew year-over-year, driven by iPhone sales and services revenue.

“In mainland China, we set a quarterly record for the September quarter for iPhone,” Cook told Reuters. “We had four out of the top five best-selling smartphones in urban China.”

Cook said Apple was “working hard to manufacture more” iPhone 15 Pro and Pro Max devices. “We do believe that later this quarter, we’ll reach a supply-demand balance,” he said.

Several global trends are also playing in Apple’s favor, with forecasters predicting that the smartphone market has bottomed out and may start to recover in 2024.

In the longer term, investors are eying how Apple responds to the boom in generative artificial intelligence in which systems can follow prompts in human-like ways – an area that has attracted billions in spending by Microsoftand Alphabet’sGoogle. Apple has said it is working on the technology and views it as a way to improve a wide range of products.

For now, the iPhone remains Apple’s biggest seller. Sales of the device were $43.81 billion in the fourth quarter, in line with analyst expectations of $43.81 billion, according to LSEG data.

The personal computer market is also expected to fare better in the coming year. Earlier this week,Apple rolled outnew Mac machines.

Still, Mac sales slumped by a third to $7.61 billion and iPad sales declined 10% to $6.44 billion, compared with expectations of $8.63 billion and $6.07 billion, respectively.

Sales in Apple’s wearables segment, which includes the Apple Watch and AirPods, fell 3% to $9.32 billion, short of estimates of $9.43 billion, according to LSEG data.

Apple has faced several quarters of declining sales of Macs and iPads, and the fourth quarter continued that trend.

Sales in Apple’s services segment, which includes Apple TV+ and which recently closed a deal with global soccer superstar Lionel Messi, rose 16% to $22.31 billion, compared with analyst estimates of $21.35 billion.

Sports

USC WR Lemon exits vs. Michigan after hard hit

Published

2 hours ago

September 22, 2024

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USC WR Lemon exits vs. Michigan after hard hit

Paolo Uggetti, ESPNSep 21, 2024, 05:50 PM ET

USC wide receiver Makai Lemon exited Saturday’s 27-24 loss to Michigan with an apparent injury after he was hit hard during a punt return in the first half.

Lemon did not return to the game, and according to the CBS broadcast, he was taken away in an ambulance. USC did not provide an official update on Lemon’s status before the end of the game.

The sophomore wideout spent an extended amount of time lying down on the field after the injury while surrounded by several members of USC’s training and coaching staff before walking off under his own power. He entered the injury tent and then was taken into the locker room.

Tight end Lake McRee also exited the game in the second half with an apparent left leg injury. The broadcast showed McRee visibly emotional on the bench before he walked into the tunnel to the locker room.

McRee has been a mainstay of USC’s offense early on, accounting for 137 yards on nine receptions so far this season.

Lemon has caught four passes for 45 yards and a touchdown for USC this season. Last year, Lemon played both wide receiver and cornerback. As a receiver, Lemon had six catches for 88 yards.

UK

Anthony Joshua defeated by Daniel Dubois in IBF world heavyweight title at Wembley Stadium

Published

2 hours ago

September 22, 2024

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Anthony Joshua defeated by Daniel Dubois in IBF world heavyweight title at Wembley Stadium

Anthony Joshua missed out on the chance to become a three-time heavyweight world champion after he was stopped by British rival Daniel Dubois in the fifth round.

Dubois, 27, knocked down Joshua towards the end of the opening round with an overhand right to the 34-year-old’s chin.

The IBF heavyweight champion then dropped Joshua at the end of round three and twice in the fourth.

A right hook ended the fight with a knockout for Dubois’ first defence of the title.

The fighters went toe to toe at London’s Wembley Stadium in front of a record 96,000 fans.

‘We came up short’

Minutes after retaining the IBF championship, Dubois shouted to the crowd “are you not entertained?” before saying: “I’m a gladiator, you know?

“I’m just a warrior to the bitter end. I’m just ready to go. I want to go to the top level of this game and reach my potential. God bless you all.”

Joshua said the loss would not stop him from rebuilding despite admitting “we came up short”.

“You know I’m ready to kick off in the ring, but I’m going to keep my cool, keep very professional, and give respect to my opponent,” he said.

“I’m always saying to myself I’m a fighter for life… We keep rolling the dice. I had a sharp opponent, a fast opponent and a lot of mistakes from my end, but that’s the game.”

Dubois’ victory has sent a message to the whole heavyweight division

Jacquie Beltrao

Sports presenter

Daniel Dubois will feel like he has fulfilled his destiny here at Wembley. His father has trained him to be a champion boxer since he was tiny.

He held the IBF belt, but he has gone in there tonight and defended it in spectacular fashion – he is now in every conversation going forward.

What now for AJ? Can he face rebuilding? And will he even want to?

The Wembley ring walk is notoriously long, and Dubois looked nervous – but so did Joshua, who has done this many times before in front of a full house.

Perhaps he was thinking of what was at stake – the chance to be a three-time heavyweight champion of the world.

But 27-year-old Dubois holds the belt and was keen to prove he was a worthy champion quickly.

Many wondered if Dubois would freeze on the biggest stage: Question asked and answered emphatically.

It was a crushing defeat for Joshua – most were not expecting such a one-sided victory.

Dubois will now most likely take on the winner of Fury v Usyk 2 for all the belts. But the manner of his victory has sent a message to the whole heavyweight division.

Hearn: AJ will want rematch

Promoter Eddie Hearn then said “it was the first round” where Joshua lost, “after that he was fighting on heart and desire”.

Hearn added: “When you are in there with a massive puncher this is what can happen. He never stopped trying to get up, even when he couldn’t get up.

“Daniel deserves credit, he’s a real world champion. Congratulations to him… I’m sure [Joshua will] exercise that rematch clause, it’s a given, it’s a dangerous fight because he’s growing in confidence all the time but he’ll believe he can beat him.”

British champion Dubois, who before tonight had never fought at Wembley, was elevated to the IBF title holder after Oleksandr Usyk relinquished the belt.

Joshua outweighed Dubois by four pounds, despite a career-heaviest weight for his rival, ahead of the fight.

Among those watching was Tyson Fury, the former WBC heavyweight champion, who took a ringside seat.

Liam plays Oasis hits

Fury is set to fight Usyk for the other three titles in a rematch on 21 December.

Ahead of the fight, Liam Gallagher played some of Oasis’ biggest hits to the sold-out crowd.

The 52-year-old frontman walked on to a massive cheer and said “yes Wembley vibes in the air,” before launching into Rock ‘N’ Roll Star, Supersonic and Cigarettes & Alcohol.

He and Noel Gallagher will play Wembley for their first of seven reunion shows at the stadium on 25 July – 307 days away.

Other famous faces ringside were Irish MMA fighter Conor McGregor, former boxer Ricky Hatton, Spice Girl Emma Bunton and Love Island presenter Maya Jama.

US

Second boat boarded by FBI after Baltimore bridge collapse

Published

5 hours ago

September 21, 2024

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Second boat boarded by FBI after Baltimore bridge collapse

FBI agents have boarded a boat managed by the same company whose cargo ship crashed into a Baltimore bridge and caused it to collapse.

The two companies in charge of the ship “recklessly cut corners” and ignored electrical problems on the vessel before the crash in March, alleged the US Justice Department on Wednesday.

Three days later, FBI agents boarded the Maersk Saltoro, a second ship managed by the same company, although authorities did not offer further details on the operation.

Six construction workers were killed when the Dali ship had a power outage and crashed into a support column on the Francis Scott Key Bridge.

The Justice Department alleged that mechanical and electrical systems on the massive ship had been improvised and improperly maintained which led to the power outage.

Authorities are seeking to recover more than $100 million the government spent to clear the underwater debris and reopen the city’s port, which was only fully reopened in June.

It could become the most expensive marine casualty case in history and the two Singapore-based companies, Synergy Marine Group and Grace Ocean, are trying to limit their legal liability.

The Justice Department said it will vigorously contest that limitation, arguing that vessel owners and operators need to be “deterred from engaging in such reckless and exceedingly harmful behaviour”.

Darrell Wilson, a Grace Ocean spokesperson, confirmed that the FBI and Coast Guard boarded the Maersk Saltoro in the Port of Baltimore on Saturday morning.

Mr Wilson has previously said the owner and manager “look forward to our day in court to set the record straight” about the Justice Department’s lawsuit.

The Dali, which was stuck amid the wreckage of the collapse for months before it could be extricated, departed Virginia on Thursday afternoon en route to China on its first international voyage since the March 26 disaster.