Investing.com – Shares of Apple (NASDAQ:AAPL) were rising after hours after the tech giant reported a rare revenue decline due to slow iPhone sales in China and elsewhere. But the company produced the results it had told investors to expect in early January.
Shares were trading at $160.19, up 5.5% in after-hours trading. Shares were off 1% to $154.68 in regular trading.
Apple said it earned $4.18 a share in its fiscal first quarter, a penny better than expected. Revenue of $84.3 billion was slightly better than the Street — and company — estimate of $84 billion. Still, revenue overall was down 4.5%. For the second-fiscal quarter, the company sees revenue at $55 billion to $59 billion, a touch lower than the Street estimate of $58.97.
Revenue from iPhone sales fell 15% from a year ago to $52 billion, the company said, with much of the weakness coming from business in China. The company said sales in Greater China fell a whopping 27% to $13.2 billion, largely because of Sino-American trade tensions and weakness in the Chinese economy. In addition, Apple has been facing intense competition from other smartphone makers offering products at much lower prices.
Other businesses at Apple reported gains.
Apple stunned investors after the Jan. 2 market close by warning that first-quarter results would be weaker than it expected. Apple usually beats its own projections. The shares fell to as low as $142 the next day. They’re up more than 13% since and are up 1.4% for the month. But the shares are still down more than 31% since peaking in September.
The good news from the report was services revenue jumped 19% in the quarter to $10.9 billion. Sales of Macintosh computers grew 9% to $7.4 billion. IPad sales were up 17% to $6.7 billion. Wearable product sales soared 33%. As CEO Tim Cook has noted, the wearables and services businesses are not dependent on business in China.
Operating cash flow was about $26.7 billion and the company finished the quarter with about $130 billion in cash and equivalents.
Apple Shares Rise Despite iPhone Miss
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