\n<\/p>\n
Apple has been under pressure this year. It\u2019s playing catch-up to its fellow tech giants on artificial intelligence, it\u2019s seen its stock fall by double digits since the year began, it closed a store in China for the first time ever this week, and looming US tariffs on Beijing threaten its supply chain. On Thursday, the company released its third-quarter earnings of the fiscal year as investors scrutinize how the iPhone maker might turn things around.<\/p>\n
Despite the gloomy outlook, the company is still worth more than $3tn, and it beat Wall Street\u2019s expectations for profit and revenue this quarter. Apple reported a huge 10% year-over-year increase in revenue to $94.04bn, and $1.57 per share in earnings. That\u2019s substantially more than the $89.3bn in revenue and $1.43 per share that analysts predicted and is the company\u2019s biggest revenue growth since 2021.<\/p>\n
Apple\u2019s iPhone revenue also outperformed Wall Street\u2019s expectations, coming in 13% higher than the same time last year.<\/p>\n
Tim Cook, Apple\u2019s chief executive, said in a statement that the company was \u201cproud\u201d to report a \u201cJune quarter revenue record\u201d, showing growth in its iPhone, Mac and services divisions. On an earnings call on Thursday, he said the quarterly results were \u201cbetter than we expected\u201d.<\/p>\n
Dipanjan Chatterjee, a vice-president and principal analyst for Forrester, said rising services tend to boost the company\u2019s revenue stream. \u201cApple has grown accustomed to having revenue growth in this high-margin services business, which masks other areas of the business not performing as well,\u201d Chatterjee explained .<\/p>\n
He pointed to several issues that had led to Apple\u2019s less-than-stellar product performance of late. He said Apple had lagged on hardware innovation, causing \u201cconsumer apathy\u201d, and its AI rollout had been glitchy. Apple Intelligence, Apple\u2019s AI product, has been limited to incremental features and rather than transformational upgrades.<\/p>\n
And it\u2019s been more than a year since Apple announced a suite of AI upgrades to its voice assistant Siri \u2013 many of which have yet to be released.<\/p>\n
\u201cThis work [on Siri] needed more time to reach our high-quality bar,\u201d said Craig Federighi, Apple\u2019s vice-president of software engineering, during the company\u2019s developer conference in June.<\/p>\n
Donald Trump\u2019s sweeping tariffs have also been a pain point for the company as the US president pushes his desire for manufacturing to boom in the US. The vast majority of Apple\u2019s products are made in China, with about 90% of iPhones assembled there, despite recent efforts to shift production elsewhere. Cook said during the company\u2019s previous quarterly earnings call that he expected the China tariffs to add $900m to its costs this quarter.<\/p>\n
Apple has attempted to pivot, moving more of its manufacturing to other countries such as India and Vietnam. However, this week, Trump announced a rise in tariffs on India, too, up to 25% starting on 1 August.<\/p>\n
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Privacy Notice: <\/strong>Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.<\/span><\/p>\n after newsletter promotion<\/p>\n On Thursday\u2019s earnings call, Cook reminded analysts that Apple had pledged to invest $500bn in the US over the next four years and that \u201cultimately we will do more in the United States\u201d. He added Apple was \u201cmaking good progress on a more personalized Siri\u201d and promised a release next year.<\/p>\n Because of the external and internal pressures, Apple has seen its share price plummet this year. Once the industry leader of the \u201cMagnificent Seven\u201d \u2013 the most valuable publicly traded companies in the world, all American technology giants \u2013 Apple boasted the highest-performing stock and biggest market capitalization on the US stock market.<\/p>\n Now its share price is the second-worst performing after Tesla in percentage decline among the seven. Since January, Apple\u2019s stock has fallen roughly 15%. In after-hours trading on Thursday, though, the company saw a slight increase of 2.5% in its share price.<\/p>\n","protected":false},"excerpt":{"rendered":" Apple has been under pressure this year. It\u2019s playing catch-up to its fellow tech giants on artificial intelligence, it\u2019s seen its stock fall by double digits since the year began, it closed a store in China for the first time ever this week, and looming US tariffs on Beijing threaten its supply chain. On Thursday,<\/p>\n","protected":false},"author":1,"featured_media":13789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[3198,2153,481,7470,7468,7469,2382,1032,2339],"class_list":{"0":"post-13788","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-technology","8":"tag-apple","9":"tag-china","10":"tag-fears","11":"tag-progress","12":"tag-quietens","13":"tag-slow","14":"tag-streets","15":"tag-struggles","16":"tag-wall"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/13788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13788"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/13788\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/13789"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}