Apple defies expectations: Strong iPhone sales despite challenges

Apple surprised with revenue of $94.9 billion in the fourth fiscal quarter, surpassing forecasts of $94.3 billion. However, the adjusted profits were disappointing due to a one-time charge from a European Court decision that resulted in less favorable figures. Despite weaker-than-expected sales figures in the Greater China region, Apple impressed with remarkable iPhone sales. These amounted to $46.22 billion, while the market had only expected $45.04 billion. Tom Forte, Managing Director and Senior Analyst for Consumer Internet at Maxim Group, provides interesting insights in a conversation with Seana Smith on Catalysts, shedding light on Apple's recent results and their place within the "Magnificent Seven." He emphasizes that the 5.5% growth rate of iPhone revenue in the September quarter suggests a slowly progressing supercycle in AI-inspired upgrades. Key challenges include economic weakness in China, which accounts for 15% of revenue, as well as timing discrepancies between the iPhone 16 launch and the subsequent update of the Apple Intelligence software. Forte sees the delay in releasing Apple's AI features for the new iPhone model as a "real risk" for the company's consumer upgrade cycle. Despite the challenges, Forte emphasizes his preference for Amazon as the frontrunner among the Big Tech companies.