Sales of iPhones have seen a slight rise, resulting in better-than-expected sales and profits for Apple. Although the iPhone business contributed significantly to Apple’s earnings, sales in China, its third-largest market, declined by 13%. This led to a more than 3% drop in Apple’s shares after the market closed. Apple CEO Tim Cook also confirmed that the lifesaving blood oxygen feature for Apple Watches, which was recently removed due to a patent breach ruling, is unlikely to return. Cook stated that Apple would not license the technology, meaning the feature will only be restored if Apple wins an appeal.
The blood oxygen feature had been credited with saving a woman’s life when she became unresponsive during a flight. However, despite the removal of this feature, Cook emphasized that there are still numerous reasons to purchase an Apple Watch.
Meanwhile, technology companies overall had a successful day. Meta, the parent company of Facebook and Instagram, surpassed expectations and saw its share price increase by 12%. Amazon also exceeded estimates, causing its stock to rise by 5.5%.
The sales of iPhones reached $69.70 billion, surpassing analyst expectations of $67.82 billion. However, sales in China declined by 13% as Huawei continues to gain market share in the country. These figures represent Apple’s performance from October to December, which includes the crucial holiday season and the period following the release of new iPhones.
In January, Microsoft overtook Apple to become the world’s most valuable company. Investors believed that Apple was lagging behind in the race for artificial intelligence dominance among tech giants on Wall Street.
One of Apple’s new focuses is the launch of its Vision Pro, a virtual reality headset priced at $3,500. Early sales of this product will be reported in the company’s next quarter. Concurrently, Apple retained the top position on Fortune’s list of the world’s most admired companies for the 17th consecutive year.
The main issue for Apple remains the slowdown in sales in China, primarily due to increased competition from Chinese rivals like Huawei and restrictions on government employee usage of iPhones.
Additionally, there are recent reports indicating that Apple is planning to release its own electric car by 2028, deviating from their earlier goal of developing a fully self-driving vehicle.
As the sales of iPhones continue to rise, Apple faces challenges in China and navigates legal issues surrounding its Apple Watch features. However, the company remains optimistic about its future prospects.
