Name: Apple shares dip as iPhone sales miss despite earnings beat
Uploaded: 2025-10-31T01:51:17.784Z
Duration: 3 min 1 s
Description: Apple posted stronger-than-expected earnings and revenue, but weaker iPhone sales sent shares lower after the tech giant’s quarterly report.

Apple posted stronger-than-expected earnings and revenue, but weaker iPhone sales sent shares lower after the tech giant’s quarterly report.

California

Apple reported quarterly earnings that surpassed Wall Street expectations, with earnings per share at $1.85 and revenue totaling $102.47 billion. Despite these results, iPhone sales missed analyst estimates, coming in at $49.03 billion, which contributed to a roughly 3% drop in Apple’s share price.

The company’s services segment grew 15% year-on-year, surpassing $100 billion in annual revenue for the first time. Apple provided strong guidance for the December quarter, projecting double-digit growth in iPhone revenue and the best-ever December quarter for iPhone sales, while also noting ongoing supply constraints for certain models and continued integration of AI technologies.

Apple shares dip as iPhone sales miss despite earnings beat

Steve Kovach, what do the Apple numbers look like? Yeah, John, we got beats on the top and bottom lines here. Let me go through. There's a lot to unpack here as we see the stock down about 3% on first blush. EPS was a beat $1.85 compared to $1.77 expected. Revenue, a small beat here, 102.47 billion. Street wanted to see 102.24. Now, iPhone revenues, it was a miss. That might be why we're seeing some negative reaction here. But sales were still up 6% year-on-year. They came in at 49.03 billion. Street was looking for a little over 50 billion. Now, services, this is, of course, the big growth engine for Apple. It was up 15% year-on-year to 28.75 billion. That's a slight beat here. Street wanted to see 28.17 billion. And by the way, this is the end of the fiscal year. This is the first time the services business booked over $100 billion in a year. China sales, they were down about 3.5%. However, we did get some guidance this time ahead of the earnings call. I was just back there in Apple Park talking to Tim Cook about this. He was literally beaming about this guidance. December quarter revenue, they are saying it's going to be up 10% to 12% year-on-year. And iPhone revenue for the December quarter, they're now predicting up double digits year-on-year and saying this is going to be the best ever sales for the iPhone in the December quarter. So really strong guidance here, despite maybe little pockets of weakness in the September quarter results. And then as far as some other data here, I did talk to Tim Cook about those results and talking about the demand for the iPhone 17. I know Dan Ives was just talking about this. He even said there was demand for the iPhone 16 at the tail end of that life cycle. Here's what he said. On the 16 and 17 for Q4, several models were supply constrained and currently were supply constrained on several models of the iPhone 17. That is again why we're seeing such strength there in the guidance numbers that they gave us. As far as China, Tim Cook telling me, quote, we expect China to return to growth this quarter because of the reception of the iPhone there or the iPhone 17 family. And then, of course, we had to catch up on artificial intelligence. Tim Cook telling us that big AI update to Siri is still on track to launch next year. And also we talked a little bit about integrating some other AI models in there. There have been so many talks about whether that's Google or what have you. He told us, quote, in terms of the integration, we've integrated with ChatGPT and our intention is to integrate with more people over time. No specific partnership to announce today, but you can think of it as more coming. So a lot to unpack there. Really strong guidance, despite some disappointment there, at least from the streets perspective in the iPhone. But still, iPhone sales up 6% and trending towards the best December quarter ever for iPhone.

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