Apple's Earnings Top Estimates as Services Revenue Grows, But iPhone Sales Fall Short

Group 1 - The core viewpoint of the article highlights that Apple reported fiscal first-quarter earnings that exceeded estimates, driven by a rise in services revenue, despite a decline in iPhone sales [1][2] - Apple's total revenue increased by 4% year-over-year to a record $124.3 billion, with earnings reaching an all-time high of $36.33 billion or $2.40 per share, surpassing last year's figures of $33.92 billion or $2.28 per share [1][2] - Services revenue grew by 14% to $26.34 billion, while Mac and iPad sales also saw significant increases of over 15%, reaching $8.99 billion and $8.09 billion respectively [2] Group 2 - iPhone sales, however, fell just under 1% to $69.14 billion, which was below projections, marking the first full quarter since the release of the iPhone 16 in September [2] - Concerns have arisen regarding declining sales in China, where local smartphone manufacturers like Vivo and Huawei have gained market share, leading to a decrease in Apple's sales in the Greater China region [3] - Following the earnings release, Apple's shares dropped approximately 1.5% in extended trading, contributing to a total decline of about 5% for the year 2025 up to that point [3]